3 Earnings Reports That Caught My Attention Last Week: Ciena Corporation (CIEN), Smith & Wesson Holding Corporation (SWHC)

Page 1 of 2

As first-quarter earnings begin to wind down, I can’t help but point out that the majority of earnings reports we’ve covered over the past year have been better than expected. With so many companies reporting during the weeks that comprise earnings season, it’s easy for some earnings reports to fall through the cracks.

Each week for the past year, I’ve taken a look at three companies that could be worth further research after either beating or missing their profit expectations. Today, we’ll take a gander at three more companies that reported earnings last week. They may have slid under your radar, but they deserve a look.

Company Consensus EPS Reported EPS Surprise
Ciena Corporation (NASDAQ:CIEN) ($0.13) $0.12 192%
Smith & Wesson Holding Corporation (NASDAQ:SWHC) $0.23 $0.26 13%
Sarepta Therapeutics Inc (NASDAQ:SRPT) ($0.29) ($2.36) -714%

Source: Yahoo! Finance.

Ciena Corporation (NASDAQ:CIEN)
Earnings time for Ciena, a telecom network equipment provider, is typically when its shareholders retire to their foxholes, don their hard hats, and prepare for the worst. In short, Ciena’s not had the best track record of delivering on its promises of growth. Its just released first-quarter results, however, speak otherwise.

Ciena (CIEN)In a quarter where Wall Street had expected Ciena Corporation (NASDAQ:CIEN) to lose $0.13 per share, it reported a nearly 9% rise in revenue to $453.1 million and a profit of $0.12! At first I was amazed that shareholders weren’t rioting in the streets, but then I realized that a bullish trend was signaled months ago among networking companies when AT&T Inc. (NYSE:T) and Sprint Nextel Corporation (NYSE:S) both signaled their intentions to beef up infrastructure and 4G LTE network spending.

Ciena’s outperformance should have also been a dead giveaway after fiber-optic products maker JDS Uniphase Corp (NASDAQ:JDSU) crushed the Street’s estimates in late January with its second-quarter results. JDS and Ciena Corporation (NASDAQ:CIEN) go together like peanut butter and jelly and rarely does one do well (or poorly for that matter) without the other following. With JDS expanding its operating margin by 210 basis just from its sequential first-quarter, investors should have been expecting a beat here. For future reference, keep an eye on these two peas-in-a-pod if you want to know the true health of the telecom network equipment industry.

Smith & Wesson Holding Corporation (NASDAQ:SWHC)
In the case of Smith & Wesson, there was absolutely no doubt that it was going to fire past Wall Street’s expectations. For the quarter, the gun manufacturer reported a profit of $0.26 per share – or more than triple the $0.08 reported in the year-ago period – as revenue rose 39% to $136.2 million. The logic behind the move in Smith & Wesson and its biggest rival, Sturm, Ruger & Company (NYSE:RGR) is pretty clear-cut: Consumers are concerned that the tragic deaths at Newtown, Conn., will lead to stricter gun control enforcement by the Obama administration – and they’re probably right.

Ultimately, it was Smith & Wesson Holding Corporation (NASDAQ:SWHC)’s guidance that was expected to do the talking given the projected beat; and shareholders took every opportunity to sell the news. Although the company boosted its full-year revenue guidance to $575 million to $580 million, an expected 40% increase over 2012, investors had hoped for an even rosier forecast with the potential for stricter gun controls on the way.

Sturm, Ruger crushed the Street’s estimates in similar fashion, yet analysts are expecting EPS to fall noticeably in 2014 for both gun manufacturers. The amazing run in gun makers just might be coming to an end sooner than anyone had anticipated.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!