Ciena Full Year 2024 Earnings: EPS Misses Expectations

Ciena (NYSE:CIEN) Full Year 2024 Results

Key Financial Results

• Revenue: US$4.01b (down 8.5% from FY 2023).
• Net income: US$84.0m (down 67% from FY 2023).
• Profit margin: 2.1% (down from 5.8% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: US$0.58 (down from US$1.71 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Ciena EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%.

The primary driver behind last 12 months revenue was the Networking Platforms segment contributing a total revenue of US$3.04b (76% of total revenue). Notably, cost of sales worth US$2.30b amounted to 57% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Research & Development (R&D) costs, amounting to US$767.5m (47% of total expenses). Explore how CIEN's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Communications industry in the US.

Performance of the American Communications industry.

The company's shares are up 25% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 1 warning sign for Ciena you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.