Ciena Stock Giving Window of Opportunity


Adaptive network solution provider Ciena Corporation (NYSE: CIEN) Shares have lost (-43%) in the 2022 bear market, falling for 11 consecutive weeks. The fiber optic manufacturer is instrumental in the deployment of the 5G infrastructure and in the growth of wireless and accelerated cloud adoption on the edge of the network. The company reduced its revenue growth rate for 2022 to an average digit from its previous forecast of 11% to 13%. The deficit stems from industry-wide supply chain constraints in the face of robust demand for products that cause a growing backlog. Ciena’s book-invoice ratio grew well over 1.5X, from $ 2.2 billion by the end of 2021 to more than $ 4 billion by the end of the second quarter of 2022. Many of the essential low-value parts for the IC and SMIC product come from the main source. of China, which was affected by the COVID blockades. Significant demand for Ciena products adds even more to supply chain challenges as they get worse. Demand continues to exceed supply. Recovery of supply availability is the most impactful element of performance and revenue growth. Prudent investors seeking exposure to broadband network infrastructure solutions may be wary of opportunistic setbacks in Ciena’s actions.



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Publication of results for the second quarter of 2022

On June 2, 2022, Ciena reported its second quarter 2022 tax results for the quarter ended April 2022. The company reported earnings per share (EPS) of $ 0.50 with no estimates of analysts consensus of $ 0.54 per (-0.04 dollars). Revenue grew 13.8% year-over-year (YoY) to $ 949.2 million, missing analysts ’estimates of $ 950.86 million. Ciena CEO Gary Smith commented: “Our strong performance in the second fiscal quarter allowed us to achieve revenue growth of 14% year-on-year despite an increasingly difficult supply environment. We also saw continued strength in the flow of orders and the growth of the order book during the quarter, reflecting the long-term sustainability of secular demand drivers, at a time when industry-wide supply chain constraints are leading to a greater uncertainty and a wider range of potential outcomes in the coming quarters, our short – term financial performance is entirely a function of the availability component, not the strong demand underlying our business. “

Reduced orientation

Ciena expects revenue for the third fiscal quarter of 2022 to be between $ 870 million and $ 930 million compared to consensus analysts ’estimates of $ 1.08 billion. The company reduced its tax revenue from 2022 to one-digit growth from the previous growth outlook of 11% to 13%.

Takeaway calls

CEO Gary Smith noted the good performance in a context of supply chain challenges. The book-invoice ratio grew well above 1.5 times as the portfolio continued to grow. Secular positive demand trends are very lasting in the long run and CEO Smith is confident they will capture market share. The significant growth and demand for its technology has further aggravated the current challenges of the global supply chain. The company has implemented supply chain mitigation strategies, as evidenced by the delivery of more products during the second fiscal quarter of 2022 than the same period a year ago. Non-telecommunications sales grew 44% year-on-year, which includes direct web-scale revenue of 22%, up 7% year-on-year, mainly due to its Waverserver platform. The company now has six of the world’s leading web-scale companies using WaveLogic 5 Extreme. The company added 16 new WaveLogic 5E customers for a total of 172. WaveLogic SE shipments grew 50% year-over-year to over 35,000 worldwide. The routing and switching business continues to be driven by Level 1 service providers and Level 2 and 3 customers. He concluded: “Given the general demand environment, changes in business and consumer behavior have accelerated the positive trends for our business, including the adoption of the cloud, a greater focus on the edge of the network, which is really a greater capacity closer to the customer, and the Of course, the need to increase the “These are strong, long – term secular drivers for the industry, creating an incredible demand environment for our business in the future.”

Ciena Stock Opportunity Window

Opportunistic withdrawal levels CIEN

The use of rifle charts in weekly and daily time periods provides an accurate view of the landscape of CIEN actions. The weekly rifle chart formed a shooting star peak just below $ 78.80 Fibonacci level (fib).. The downward trend of the weekly rifle chart has a 5-period moving average (MA) down to 47.94 almost overlapping with the 200-period weekly MA at $ 47.55. The 15-period weekly MA continues to drop to $ 53.90. Weekly lower Bollinger Bands (BB) bands are at $ 38.46. The weekly Low market structure (MSL) breakout-activated purchase up to $ 40.47. The daily rifle chart has a downward trend with a flattening 5-period MA at $ 43.25 with a 15-period MA falling at $ 47.24 with lower daily BBs at $ 39.78. The daily stochastic attempts to cross the 10 band. Daily upper BBs are at $ 55.99 and daily 200-period MAs are at $ 59.62. Prudent investors can look for opportunistic withdrawal levels at the level of $ 40.77 fib, $ 37.13 fib, $ 35.80 fib, $ 33.15 fib, $ 30.87 fib, $ 29.58 fib and the level of $ 27.82 fib. Rising trajectories range from the $ 50.54 fib level to the $ 63.34 fib level.



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