UBS Maintains a 'Neutral' on CIENA (CIEN); Adusting PT & Estimates After Q1 Review
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Price: $428.77 -3.17%
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on CIENA (NASDAQ: CIEN) price target raised from $13.50 to $14.00.
UBS analyst said, "CIEN reported 1Q sales of $417M, in-line with its pre-announce, and EPS of -$0.17 which was below our revised estimate. Weakness was driven by international project revenue recognition issues relating to a few contracts with new non-tier1 customers. Segmentaly Transport (-7% YoY) and Carrier Ethernet (-21% YoY) both contributed to the weakness. GM came in below as well at 41.9% vs est 43.8%. 2Q sales were guided in-line with cons although profitability will be lower."
"Although 100G is ramping, we expect the competitive dynamics to become more intense and believe that CIENs earnings power is more tied to an optical switch cycle which we don’t see at this point. As such we do not see Ciena’s earnings power going much higher than $0.85 - $1.00 in the near to medium term."
UBS lowers Q2 revs/EPS from $472m/$0.14 to $448/$0.00, lowers FY12 EPS from $0.59 to $0.09, but maintains FY13 at $0.84.
For an analyst ratings summary and ratings history on CIENA click here. For more ratings news on CIENA click here.
Shares of CIENA closed at $14.01 yesterday.
UBS analyst said, "CIEN reported 1Q sales of $417M, in-line with its pre-announce, and EPS of -$0.17 which was below our revised estimate. Weakness was driven by international project revenue recognition issues relating to a few contracts with new non-tier1 customers. Segmentaly Transport (-7% YoY) and Carrier Ethernet (-21% YoY) both contributed to the weakness. GM came in below as well at 41.9% vs est 43.8%. 2Q sales were guided in-line with cons although profitability will be lower."
"Although 100G is ramping, we expect the competitive dynamics to become more intense and believe that CIENs earnings power is more tied to an optical switch cycle which we don’t see at this point. As such we do not see Ciena’s earnings power going much higher than $0.85 - $1.00 in the near to medium term."
UBS lowers Q2 revs/EPS from $472m/$0.14 to $448/$0.00, lowers FY12 EPS from $0.59 to $0.09, but maintains FY13 at $0.84.
For an analyst ratings summary and ratings history on CIENA click here. For more ratings news on CIENA click here.
Shares of CIENA closed at $14.01 yesterday.
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