Both Infinera and Ciena are exposed to rising competition from cheaper players in China, like Huawei and ZTE, and nimbler rivals like Acacia Communications, which provides smaller, denser, and more power-efficient chipsets than many of its competitors. Let's take a closer at the two companies' core businesses, growth trajectories, and headwinds to find out. So what did Ciena say to cause so much consternation on Wall Street? Ciena had 37 more reviews than Infinera that mentioned "Work environment" as a Pro. Given Ciena's stronger consensus rating and higher probable upside, analysts clearly believe Ciena is more favorable than Infinera. Infinera, Extreme, Viavi selloffs yesterday overdone, says B. Riley FBR 09/04/20 Morgan Stanley Ciena price target lowered to $46 from $50 at Morgan Stanley 08/17/20 Fly Intel: Top five analyst upgrades 08/17/20 Stifel Infinera upgraded to Buy from Hold at Stifel "Work life balance" was the most mentioned Con at Ciena. Cisco, Coriant, and Infinera each garnered 36 … At the same time, traditional service providers such as Verizon are expanding advanced … Analysts say Ciena has been gaining share versus rival Infinera . Unprecedented capacity. A commonly heard phrase over the years has been that nobody gets fired for buying from Cisco Systems. Ciena Corporation (NYSE:CIEN) reported its third-quarter earnings this morning and beat analyst estimates handily, earning $1.06 per share (adjusted), versus the Street consensus expectation of $0.83. Nonetheless, "you will be hearing this from our competitors, peers and even customers, frankly." Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Infinera Corporation vs. Ciena Corporation @themotleyfool #stocks $INFN $CIEN $VZ $ACIA, Why Investors Need to Look Past Ciena's Near-Term Troubles, CIENA Corp (CIEN) Q4 2020 Earnings Call Transcript, 4 Reasons to Buy Infinera Stock After Its Q3 Earnings Beat, Infinera (INFN) Q3 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. And Ciena (NASDAQ:CIEN, news, filings) chimed in with a win at Ciena (NASDAQ:CIEN, news, filings). Pro forma earnings eclipsed estimates, and the company's profits as calculated according to generally accepted accounting principles (GAAP) jumped 65% year over year to $0.91. Level 3 to may spurn Huawei and sign a three-year deal with Infinera or Ciena. While both Infinera and its archrival continue to benefit greatly from the US government protection from Chinese competition, … Summary The problem was with guidance. As a result, Infinera posted double-digit annual revenue declines for four straight quarters, and analysts expect its revenue to drop 14% to $750 million this year. Ciena, Cisco, and Infinera are the dominant suppliers for this sector. As a result, analysts expect Ciena's revenue to rise 7% to $2.79 billion this year, and for its non-GAAP earnings to rise 27% to $1.75 per share. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Follow him on Twitter for more updates! In Asia, Ciena has fared well versus China's Huawei. Ensure all network links are running efficiently with highly tunable coherent optics, supporting single wavelength line rates as high as 800 Gb/s. Its forward P/E of 11 is even lower, indicating that it's cheap relative to its growth potential. The revenue from the system must be nearing its peak – in fact Ciena long ago shut down the entire site originally responsible for the product (they are now at Infinera). Stock Advisor launched in February of 2002. That's the bad news for Ciena. Telcos and other customers are currently investing more heavily in shorter range metro and DCI solutions, and Infinera generates much less revenue from those newer businesses. Last quarter, 81% of its revenue came from networking platforms, 13% came from services, and the remaining 6% came from software solutions. CenturyLink is using Infinera in the longhaul, but Ciena … We are continually improving the user experience for everyone and applying the relevant accessibility standards. We are continually improving the user experience for everyone and applying the relevant accessibility standards. However, Infinera expects cyclical demand for long haul WDM to gradually rebound, and analysts expect its revenue to rise 15% and for its loss to narrow next year. For 2018, analysts see Ciena's revenue and earnings respectively rising 6% and 17% -- so it clearly has steadier growth than Infinera. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Infinera expects its revenue to rise about 37% this year to $1.3 billion, but it trades at just 0.6 times that figure. Ciena has a consensus price target of $56.6765, suggesting a potential upside of 7.08%. Clark has a $13.50 price target on the stock. Its services unit offers deployment, consulting, and maintenance services, while its software helps companies monitor their networks. Ciena has a more diversified business. Now here's where it gets worse for everybody else: Ciena's troubles, it seems, are not limited to Ciena -- in fact, the opposite may be true. Global Optical Transport Network Equipment Market 2017-2021 with Ciena, Cisco, Coriant, Fujitsu, Huawei Technologies, Infinera, Nokia & ZTE Dominating News provided by Research and Markets Infinera currently has a consensus price target of $8.5769, suggesting a potential downside of 6.77%. Its price-to-sales ratio of 1.7 merely matches the industry average for communication equipment makers. Infinera doesn't have a P/E ratio since it wasn't profitable over the past year. Infinera’s optical transport and ROADM solutions are designed and built to ensure maximum efficiency across the network to reduce operating costs and maximize asset utilization. Given Ciena's higher possible upside, analysts plainly believe Ciena is more favorable than Mer Telemanagement Solutions. Digging into market specifics, Ciena was deemed the top data center interconnection (DCI) vendor by 39 percent of those surveyed. Ciena has a better diversified business, decent top and bottom line growth, and lower valuations. At risk of losing U.S. partnerships, Level 3 Communications may soon strike a multimillion-dollar, three-year optical networking deal with Infinera or Ciena . Ciena has a consensus target price of $56.6765, indicating a potential upside of 7.08%. "And everyone will be talking about this over the next several quarters.". Infinera’s Optical Innovation Center is a highly vertically integrated organization that employs a world-class team of scientists and engineers who take innovative solutions from conception to development to production. Density. Within the public-company domain, we view the Optical Systems companies Ciena (ticker: CIEN) (rated at Buy, $29 price target) and Infinera (INFN) … WaveLogic 5 will support 800-Gbps coherent transmission and come in two versions. Both optical transport solution providers were cited as turnaround plays on the "super cycle" in fiber upgrades -- fueled by the surging use of cloud services, streaming media, and other data-intensive tasks -- yet they failed to impress investors. Ciena has fared better with its diversified exposure to fiber optic components, software suites, and transport solutions for the metro and DCI markets. These systems allow telcos and other companies to boost the capacity of their long-distance networks without laying down additional fiber. Ciena (NYSE: CIEN) has unveiled WaveLogic 5, new iterations of its WaveLogic coherent engine ASIC. ... Mer Telemanagement Solutions vs. Infinera Stock. Ciena and Infinera make system-level optical products. Ciena had 82 more reviews than Infinera that mentioned "Work life balance" as a Pro. Ciena's P/S ratio of 1.3 is also below the industry average. Learn more. Ciena has 6,383 employees and is ranked 14th among it's top 10 competitors. Returns as of 01/14/2021. Now here's the bad: Guidance at Ciena was exceptionally weak, and that weak guidance is destroying Ciena stock in morning trading. Power efficiency. Infinera Corporation is a Sunnyvale, California-based vertically integrated manufacturer of Wavelength division multiplexing (WDM)-based packet optical transmission equipment and IP transport technologies for the telecommunications service provider market. As of 10:15 a.m. EDT, Ciena stock is down a staggering 24%, and fellow networking equipment industry players Infinera (NASDAQ:INFN), Lumentum Holdings (NASDAQ:LITE), and II-VI Incorporated (NASDAQ:IIVI) are falling in tandem, down 16.3%, 11%, and 9.1%, respectively. Infinera's lack of profitability stands in stark contrast to Ciena, which just posted a great quarter. Together they have raised over 10.1B between their estimated 1.2M employees. Infinera on Nov. 6 missed on both third-quarter revenue and December quarter guidance. Accordingly, Ciena management now forecasts fourth-quarter revenue of only $800 million to $840 million, versus analyst estimates of nearly $1 billion, according to a report by TheFly.com. On the bottom line, analysts expect a non-GAAP loss of $0.56 per share this year, compared to a profit of $0.34 in 2016. Infinera forecast earnings in a range of a 5-cent loss to a 2-cent profit vs. estimates of a 6-cent loss. Cisco, Ciena and Infinera have carved out a sizable niche in the disaggregated WDM systems market for data center interconnect applications, commanding a combined 85% share. White Paper. The CEO commented further that it looks like telecom equipment spending was "somewhat front-end loaded in the calendar year, resulting in lower orders in our third quarter," and implying that total growth in spending on optical equipment this year will be at best in the "low single digits," and at worst, "flat.". Stock Advisor launched in February of 2002. Ciena is committed to ensuring digital accessibility for people with disabilities. Cumulative Growth of a $10,000 Investment in Stock Advisor, Why Ciena Stock Just Crashed 23% -- and Took Infinera, Lumentum, and II-VI Down With It @themotleyfool #stocks $IIVI $INFN $CIEN $LITE, Why Investors Need to Look Past Ciena's Near-Term Troubles, CIENA Corp (CIEN) Q4 2020 Earnings Call Transcript, 4 Reasons to Buy Infinera Stock After Its Q3 Earnings Beat, Infinera (INFN) Q3 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. But amid all that competition, Ciena's gross margins held up better than Infinera's thanks to its better diversified business, which relies less on cyclical boosts: I personally wouldn't buy either stock today since there are more stable income-generating ways to play infrastructure upgrades via telcos or networking equipment companies. Ciena is committed to ensuring digital accessibility for people with disabilities. Ciena also benefited from Verizon's 100G metro rollout in the US and a similar deal with Tata Communications in India.
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