Jefferies Lowers Price Target on CIENA (CIEN), Reiterates UNDERPERFORM Rating
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Price: $395.79 +0.84%
Rating Summary:
26 Buy, 6 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Underperform rating on shares of CIENA (NASDAQ: CIEN) as it lowers its price target from $16 to $12.50.
The company released its third quarter results mixed with expectations. Revenue for the quarter was $435.3 million, below the firms estimate of $437.1 million and the consensus of $443.3 million. Earnings came in at $0.02 after being adjusted, well above the firms estimate of a loss of $0.22 and the consensus of a loss of $0.08.
For the fourth quarter, CIENA is forecasting revenue will fall between $440 million and $460 million, well below the consensus of $475 million. Non-GAAP EPS for the quarter is estimated to be roughly $0.10.
The firm is raising its 2011 EPS estimates from ($0.97) to ($0.83), but is lowering its 2012 estimate from $0.32 to $0.20. Revenue for the two years is forecasted to be $1.732 billion and $1.867 billion by Jefferies.
An analyst at the firm comments, "The EPS report really didn’t change our fundamental view of the business. We remain fearful that the industry structure isn’t conducive to Ciena generating high-single-digit operating margins over a sustained period."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $14.71 yesterday.
The company released its third quarter results mixed with expectations. Revenue for the quarter was $435.3 million, below the firms estimate of $437.1 million and the consensus of $443.3 million. Earnings came in at $0.02 after being adjusted, well above the firms estimate of a loss of $0.22 and the consensus of a loss of $0.08.
For the fourth quarter, CIENA is forecasting revenue will fall between $440 million and $460 million, well below the consensus of $475 million. Non-GAAP EPS for the quarter is estimated to be roughly $0.10.
The firm is raising its 2011 EPS estimates from ($0.97) to ($0.83), but is lowering its 2012 estimate from $0.32 to $0.20. Revenue for the two years is forecasted to be $1.732 billion and $1.867 billion by Jefferies.
An analyst at the firm comments, "The EPS report really didn’t change our fundamental view of the business. We remain fearful that the industry structure isn’t conducive to Ciena generating high-single-digit operating margins over a sustained period."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $14.71 yesterday.
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