Ciena (CIEN): A Buy After Earnings

Page 1 of 2

Ciena Corporation (NASDAQ:CIEN) is up 5% this week following its latest earnings announcement. Ciena reported quarterly revenue up 2% year over year, but still posted a net loss of $0.39 per share. Ciena did reveal a solid backlog, which coupled with a rebounding economy, should allow the company to post positive earnings next fiscal year. The fundamental driver of Ciena’s demand is the continued rise in bandwidth consumption. Ciena’s focus on helping carriers transition to next generation networks places it in one of the fastest growing segments of the telecommunications market.

Ciena is a leading supplier of optical transport technology and saw FY2011 (ended in Oct.) sales come in 40% higher YOY, driven by its 2010 acquisition of Nortel’s Metro Ethernet Networking segment. Ciena has made several acquisitions to expand its addressable market and enter new growth areas, with a key buy of Nortel Network and its optical networking capabilities. This acquisition expanded Ciena’s products portfolio and global reach, pushing it into the emerging markets of Asia and Africa.

Ken Griffin CITADEL INVESTMENT GROUP

Ciena has significantly expanded its operating market by shifting to data networking from optical networking over the last few years. This has helped Ciena enter a broader optical and data-equipment market. Ciena is increasingly investing in this area to “capture” the tremendous growth opportunity presented by rising bandwidth demand from network service providers. Billionaire Ken Griffin – founder of Citadel Investment Group – is one of Ciena’s big name investors (check out Ken Griffin’s newest picks).

Ericsson (NASDAQ:ERIC) pays a high dividend yield (for the communication industry) at 3.6%. This could be due to the company’s less-than-stellar expected growth rate; by offering a robust dividend yield Ericsson is able to keep shareholders’ interest. The sell-side expects annual earnings to grow by roughly 9% a year over the next half-decade; this is below Ciena by six full percentage points. Ericsson had billionaire Ken Fisher – founder of Fisher Asset Management – as one of its key income-seeking investors last quarter (see Ken Fisher’s top tech bets).

Juniper Networks, Inc. (NYSE:JNPR) is up over 10% this week after seeing an upgrade at Cantor Fitzgerald, partially due to an announcement to acquire the remainder of its unowned Contrail shares. Despite three straight quarterly earnings beats, Juniper is still relatively flat year to date, but is neither a value –17x earnings–, nor a growth –13.5% long term growth rate– play. Ray Dalio of Bridgewater Associates gave Juniper a vote of confidence last quarter by taking a new position in the stock (see Dalio’s other big bets).

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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!