Latest news with #CIEN
Yahoo
3 days ago
- Business
- Yahoo
Raymond James Lifts Ciena Corporation (CIEN)'s Price Target To $83, Maintains Outperform Rating
On Thursday, analysts at Raymond James raised Ciena Corporation (NYSE:CIEN)'s price target to $83 from $79, while maintaining an Outperform rating for the stock. The revised price target represents a 14% upside potential from its current trading value. A team of telecom engineers discussing a communication infrastructure diagram. Raymond James' adjustment follows Ciena Corporation (NYSE:CIEN)'s Q2 FY25 earnings call on June 5, in which the company reported revenue of $1.13 billion, up 23.6% year-over-year, driven by accelerating demand in cloud and AI. However, Ciena Corporation (NYSE:CIEN)'s adjusted earnings per share of $0.42 missed analysts' estimates by 9 cents, overshadowing the impressive revenue growth. The company's gross margin also declined to 41% from 43.5% in the prior year's quarter. Shares crashed nearly 13% on Wednesday to close at $73.05. Despite disappointing investors, the stock has demonstrated remarkable strength over the past year, gaining over 51% during the period. Raymond James analysts remain confident about the company's growth prospects, given its technology leadership and favorable market trends. They expressed optimism about Ciena Corporation (NYSE:CIEN)'s long-term potential, citing its strong strategic position in the industry. Ciena Corporation (NYSE:CIEN) is a network technology company that provides hardware, software, and services to a range of network operators. While we acknowledge the potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Ciena: Fiscal Q2 Earnings Snapshot
HANOVER, Md. (AP) — HANOVER, Md. (AP) — Ciena Corp. (CIEN) on Thursday reported fiscal second-quarter net income of $9 million. The Hanover, Maryland-based company said it had profit of 6 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, came to 42 cents per share. The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share. The developer of high-speed networking technology posted revenue of $1.13 billion in the period, which beat Street forecasts. Seven analysts surveyed by Zacks expected $1.1 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CIEN at Sign in to access your portfolio
Washington Post
5 days ago
- Business
- Washington Post
Ciena: Fiscal Q2 Earnings Snapshot
HANOVER, Md. — HANOVER, Md. — Ciena Corp. (CIEN) on Thursday reported fiscal second-quarter net income of $9 million. The Hanover, Maryland-based company said it had profit of 6 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, came to 42 cents per share. The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share.
Yahoo
10-04-2025
- Business
- Yahoo
An Intrinsic Calculation For Ciena Corporation (NYSE:CIEN) Suggests It's 29% Undervalued
Ciena's estimated fair value is US$87.78 based on 2 Stage Free Cash Flow to Equity Ciena's US$61.99 share price signals that it might be 29% undervalued Analyst price target for CIEN is US$80.14 which is 8.7% below our fair value estimate Does the April share price for Ciena Corporation (NYSE:CIEN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$335.8m US$433.5m US$505.5m US$559.6m US$606.2m US$646.5m US$681.9m US$713.7m US$742.9m US$770.2m Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x2 Est @ 10.71% Est @ 8.32% Est @ 6.65% Est @ 5.48% Est @ 4.66% Est @ 4.09% Est @ 3.69% Present Value ($, Millions) Discounted @ 7.3% US$313 US$376 US$409 US$422 US$426 US$423 US$416 US$405 US$393 US$380 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$4.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We discount the terminal cash flows to today's value at a cost of equity of 7.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$770m× (1 + 2.8%) ÷ (7.3%– 2.8%) = US$17b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$17b÷ ( 1 + 7.3%)10= US$8.5b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$12b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$62.0, the company appears a touch undervalued at a 29% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Ciena as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.3%, which is based on a levered beta of 1.058. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Ciena Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For Ciena, we've compiled three further items you should assess: Risks: As an example, we've found 2 warning signs for Ciena that you need to consider before investing here. Future Earnings: How does CIEN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart . Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
