Ciena
CIEN
is scheduled to report earnings before Tuesday’s open. The stock hit a record high near $1,057/share in 2000 and is currently trading near $47/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $0.61/share on $1.09 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.65/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
Ciena a price to earnings (P/E) ratio of 23. The company’s earnings are expected to grow by a whopping +68% in 2023 compared to 2022 and by another +24% in 2024 compared to 2023.
A Closer Look At The Technicals
Technically, the stock has been falling since 2021 when it traded near $78/share. The stock bottomed in October 2022 near $38/share. That was a steep bear market because the stock fell over 50% during that time. Since then, the stock has rallied to the mid 40’s but is still well off its 2021 high. The bulls want to see the stock rally after earnings and the bears want to see it fall and hit new lows.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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