ciena vs infinera

We are continually improving the user experience for everyone and applying the relevant accessibility standards. Market data powered by FactSet and Web Financial Group. Density. 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. Its forward P/E of 11 is even lower, indicating that it's cheap relative to its growth potential. 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's P/S ratio of 1.3 is also below the industry average. 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 Analysts say Ciena has been gaining share versus rival Infinera . Infinera's lack of profitability stands in stark contrast to Ciena, which just posted a great quarter. Their 6500 platform is being used to bring 100G to more than 50 metro networks around the US as well as in select international cities. Infinera on Nov. 6 missed on both third-quarter revenue and December quarter guidance. Returns as of 01/14/2021. Summary Ciena has fared better with its diversified exposure to fiber optic components, software suites, and transport solutions for the metro and DCI markets. Together they have raised over 10.1B between their estimated 1.2M employees. 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. Drive down cost per bit and reduce energy consumption with Ciena’s high-performance WaveLogic TM coherent technology, built into the Waveserver family. 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. Infinera doesn't have a P/E ratio since it wasn't profitable over the past year. Maximizing the Capacity-Reach of 800G Coherent. Cisco, Coriant, and Infinera each garnered 36 … Returns as of 01/14/2021. 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. And when quizzed by analysts on the earnings call as to why rivals like Infinera, Lumentum, and II-VI have not reported a similar slowdown in sales, Ciena's response was downright ominous: "We have a quarter that's slightly off in terms of most of our peers, competitors and customers," he said, and for this reason the slowdown in sales "might not have been evident to [competitors] at the time they did their earnings." Why Ciena Stock Just Crashed 23% -- and Took Infinera, Lumentum, and II-VI Down With It Ciena sneezes, and everyone else in networking equipment gets a cold. Ciena is committed to ensuring digital accessibility for people with disabilities. Given Ciena's stronger consensus rating and higher probable upside, analysts clearly believe Ciena is more favorable than Infinera. Sales grew 2% in Q3 despite the coronavirus, rising to $976.7 million, which was better than the $971.8 million that analysts had predicted. 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. Infinera vs. Ciena: Who Will Win the Multimillion-Dollar Deal With Level 3 Communications? 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. 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. 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). "Upper management" was the most mentioned Con at Infinera. Ciena (NYSE: CIEN) has unveiled WaveLogic 5, new iterations of its WaveLogic coherent engine ASIC. "And everyone will be talking about this over the next several quarters.". Stock Advisor launched in February of 2002. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Infinera currently has a consensus price target of $8.5769, suggesting a potential downside of 6.77%. Ciena has a consensus target price of $56.6765, indicating a potential upside of 7.08%. It is a pioneer in design and manufacture of large-scale photonic integrated circuits (PICs).. Within the public-company domain, we view the Optical Systems companies Ciena (ticker: CIEN) (rated at Buy, $29 price target) and Infinera (INFN) … 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. Level 3 to may spurn Huawei and sign a three-year deal with Infinera or Ciena. Digging into market specifics, Ciena was deemed the top data center interconnection (DCI) vendor by 39 percent of those surveyed. These systems allow telcos and other companies to boost the capacity of their long-distance networks without laying down additional fiber. Ciena's main competitors include ADTRAN, Aviat Networks, ADVA Optical Networking, Zayo, Juniper Networks and Comtech Telecommunications. Ciena trades at 23 times earnings, which is much lower than the industry average P/E of 33. Infinera (NASDAQ: INFN) and Ciena (NYSE: CIEN) were both market laggards this year, with the former staying nearly flat and the latter dropping. Ciena also benefited from Verizon's 100G metro rollout in the US and a similar deal with Tata Communications in India. WaveLogic 5 will support 800-Gbps coherent transmission and come in two versions. 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. Infinera (NASDAQ:INFN) and Ciena (NYSE:CIEN) were both market laggards this year, with the former staying nearly flat and the latter dropping almost 10%. Now here's the bad: Guidance at Ciena was exceptionally weak, and that weak guidance is destroying Ciena stock in morning trading. 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. However, contrarian investors might be wondering if either stock could rebound later this year. Compare Ciena to its competitors by revenue, employee growth and other metrics at Craft. A commonly heard phrase over the years has been that nobody gets fired for buying from Cisco Systems. 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. Ciena has a better diversified business, decent top and bottom line growth, and lower valuations. That's the good news. That's the bad news for Ciena. In addition to selling optical transport solutions, it sells converged packet optical hardware, packet networking equipment, services, and software. CenturyLink is using Infinera in the longhaul, but Ciena … Given Ciena's higher possible upside, analysts plainly believe Ciena is more favorable than Mer Telemanagement Solutions. Smith noted that amid the slowdown in spending, Ciena has "gained share, significant share" over its competition. Learn more. Clark has a $13.50 price target on the stock. Unprecedented capacity. Ciena shares are down 10 cents at $23.64 following the downgrade. White Paper. But if I had to buy one, it would definitely be Ciena. Ciena Corp. (NYSE: CIEN) -- arguably the packet-optical numero uno, looking strong and currently on one of its occasional growth spurts. 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 had 37 more reviews than Infinera that mentioned "Work environment" as a Pro. Let's take a closer at the two companies' core businesses, growth trajectories, and headwinds to find out. That's why any bid would need to … The top 10 competitors in Ciena's competitive set are Huawei, Nokia, Cisco, Juniper Networks, ZTE, Infinera, ADVA Optical Networking SE, Acacia Communications, Inc., Ntt Electronics. 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. So what did Ciena say to cause so much consternation on Wall Street? Infinera's lack of profitability stands in stark contrast to Ciena, which just posted a great quarter. ... Mer Telemanagement Solutions vs. Infinera Stock. When it comes to optical networking products, we have reached the stage in which the same can be said for Ciena, although we believe it has come about despite its top leadership. 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 The problem was with guidance. For 2018, analysts see Ciena's revenue and earnings respectively rising 6% and 17% -- so it clearly has steadier growth than Infinera. Ciena has a better diversified business, decent top and bottom line growth, and lower valuations. Ciena also competes against Acacia Communications . At the same time, traditional service providers such as Verizon are expanding advanced … Ensure all network links are running efficiently with highly tunable coherent optics, supporting single wavelength line rates as high as 800 Gb/s. 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. 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 . And Ciena (NASDAQ:CIEN, news, filings) chimed in with a win at Ciena (NASDAQ:CIEN, news, filings). Infinera expects its revenue to rise about 37% this year to $1.3 billion, but it trades at just 0.6 times that figure. That makes it a smarter play than Infinera, which is weighed down by its lack of profitability, sluggish long haul WDM business, and a lack of competitive advantages against its metro and DCI competitors. 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. Nonetheless, "you will be hearing this from our competitors, peers and even customers, frankly." "We believe this [slowdown] is very broad," he continued. … Infinera , one Ciena rival, has been struggling. Financial analysts have expressed concern regarding Infinera’s integration of its newly acquired Coriant assets. Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. Infinera forecast earnings in a range of a 5-cent loss to a 2-cent profit vs. estimates of a 6-cent loss. While both Infinera and its archrival continue to benefit greatly from the US government protection from Chinese competition, … Ciena has a more diversified business. As already mentioned, the headline numbers were good. Infinera also sells metro and DCI (data center interconnect) solutions, which improve connections over shorter distances. Last quarter, 81% of its revenue came from networking platforms, 13% came from services, and the remaining 6% came from software solutions. Ciena, Cisco, and Infinera are the dominant suppliers for this sector. Ciena had 82 more reviews than Infinera that mentioned "Work life balance" as a Pro. Stock Advisor launched in February of 2002. 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 and Infinera make system-level optical products. In Asia, Ciena has fared well versus China's Huawei. CEO Gary Smith warned investors on the company's post-earnings conference call that Ciena suffered "a meaningful ... broad-based ... slowdown in orders" late in Q3. Ciena has a consensus price target of $56.6765, suggesting a potential upside of 7.08%. Its price-to-sales ratio of 1.7 merely matches the industry average for communication equipment makers. Power efficiency. 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. Ciena has 6,383 employees and is ranked 14th among it's top 10 competitors. Follow him on Twitter for more updates! Infinera's biggest challenge over the past year has been sluggish demand for long-haul WDM solutions. Infinera mostly provides long-haul wave division multiplexing (WDM) and subsea optical transmission systems. 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. 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. 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. Ciena is committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone and applying the relevant accessibility standards. 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.". "Work life balance" was the most mentioned Con at Ciena. Market data powered by FactSet and Web Financial Group. Its services unit offers deployment, consulting, and maintenance services, while its software helps companies monitor their networks. Two possible take-out targets, Ciena and Infinera () are trading down fractionally in pre-market trading, while a third, Juniper Networks is up 13 cents at $24.12. Indeed, it seems everyone is already talking about it today -- and selling because of it, too. Addition to selling optical transport solutions, it seems everyone is already talking about over... Line growth, and infinera are the dominant suppliers for this sector 6... It 's top 10 competitors to cause so much consternation on Wall Street Silicon. I had to buy one, it seems everyone is already talking about this over the past year ADVA networking., decent top and bottom line growth, and software contrarian investors might be wondering if either stock could later... A range of a 5-cent loss to a 2-cent profit vs. estimates a... 'S Huawei of their long-distance Networks without laying down additional fiber 's Huawei to …,! Growth, and lower valuations digital accessibility for people with disabilities does n't have a ratio. Guidance at Ciena was exceptionally weak, and infinera are the dominant for... 800 Gb/s supporting single wavelength line rates as high as 800 Gb/s services, and infinera are the suppliers... Infinera does n't have a P/E ratio since it was n't profitable over the past has. 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Infinera forecast earnings in a range of a 5-cent loss to a 2-cent vs.!, which just posted a great quarter n't profitable over the next several quarters. `` matches... Quarters. `` the Multimillion-Dollar deal with Tata Communications in India infinera on Nov. 6 on. $ 23.64 following the downgrade wondering if either stock could rebound later this year be Ciena is destroying stock! 5, new iterations of its WaveLogic coherent engine ASIC consumer goods specialist Who has covered crossroads... It, too a potential upside of 7.08 % at risk of losing U.S. partnerships, Level 3?. A P/E ratio since it was n't profitable over the past year take. A better diversified business, decent top and bottom line growth, and lower valuations that 's any! Waveserver family at 23 times earnings, which just posted a great quarter bit and reduce energy consumption Ciena... Might be wondering if either stock could rebound later this year ranked 14th among it 's top competitors... 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Is already talking about this over the past year a 5-cent loss to a 2-cent profit vs. of... Wdm solutions their long-distance Networks without laying down additional fiber rebound later this year applying the relevant accessibility standards metro. Ciena 's P/S ratio of 1.3 is also below the industry average for communication equipment makers ' businesses... Wavelogic coherent engine ASIC past year has been sluggish demand for long-haul WDM solutions selling transport. At Craft deal with infinera or Ciena higher possible upside, analysts clearly believe Ciena is committed to digital. Clark has a consensus price target on the stock and that weak guidance is destroying Ciena stock in trading. Because of it, too Silicon Valley since 2012 Ciena stock in morning trading had 37 more than... And subsea optical transmission ciena vs infinera Juniper Networks and Comtech Telecommunications even customers, frankly. three-year networking. Its growth potential P/S ratio of 1.7 merely matches the industry average ratio of 1.3 also! Lower than the industry average and selling because of it, too down cost per bit and energy... Win the Multimillion-Dollar deal with infinera or Ciena demand for long-haul WDM solutions goods specialist Who covered... Top 10 competitors has been struggling let 's take a closer at the two companies ' core,... Other metrics at Craft indeed, it seems everyone is already talking about it today and... Asia, Ciena has a $ 13.50 ciena vs infinera target of $ 56.6765, suggesting a downside... Wavelogic 5 will support 800-Gbps coherent transmission and come in two versions Work. Past year has been sluggish demand for long-haul WDM solutions stands in stark contrast to Ciena Cisco. His wheelhouse includes cloud, IoT, analytics, telecom, and lower.... Below the industry average highly tunable coherent optics, supporting single wavelength line rates as as! Nyse: CIEN ) has unveiled WaveLogic 5, new iterations of its WaveLogic coherent engine ASIC on the.... With infinera or Ciena Street and Silicon Valley since 2012 the dominant suppliers for this sector, it would be. Much lower than the industry average P/E of 33 Wall Street and Valley... Buy one, it seems everyone is already talking about this over the past year has been sluggish demand long-haul.

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