Courtesy of Benzinga.
Ciena (NYSE: CIEN), which has seen a string of losses and fluctuating revenue in recent quarters, is set to post results for its fiscal third period September 4.
The telecom infrastructure company — shares are down more than 16 percent year to date — is expected to swing to earnings of $0.10 per share, from a loss of $0.27 per share a year earlier and a loss of $0.10 in the most recent quarter.
Deutsche Bank's Brian Modoff expects revenue derived from non-telecom sources like cloud computing and data centers will continue to grow, hitting 25 percent of the company's expected $600.8 million of third-quarter revenue.
The consensus revenue expectation equals 18 percent growth from a year earlier and seven percent sequentially.
Modoff thinks non-telecom revenue could drive a slight revenue surprise for both the third quarter and fourth period outlook.
But on the core telecom side, AT&T is expected to launch an upgrade to its network during the second half of calendar 2015, creating demand for Ciena's relatively high-margin Ethernet switches.
"Ciena is in a share gain mode relative to its peers," Modoff said, citing a number of significant recent orders.
Those orders, in Modoff's view could lead to further business in Europe and Asia in 2015. Modoff rates the stock a Buy with a $30 target.
Ciena closed Monday at $19.93, up 0.45 percent.
Posted-In: Brian ModoffAnalyst Color Earnings News Guidance Price Target Reiteration Analyst Ratings
