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ciena vs infinera

Unprecedented capacity. Infinera , one Ciena rival, has been struggling. Summary Returns as of 01/14/2021. Infinera doesn't have a P/E ratio since it wasn't profitable over the past year. 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. 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. Analysts say Ciena has been gaining share versus rival Infinera . 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%. 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. It is a pioneer in design and manufacture of large-scale photonic integrated circuits (PICs).. Power efficiency. Follow him on Twitter for more updates! Its forward P/E of 11 is even lower, indicating that it's cheap relative to its growth potential. 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 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.". 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. 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. 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 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. Digging into market specifics, Ciena was deemed the top data center interconnection (DCI) vendor by 39 percent of those surveyed. Within the public-company domain, we view the Optical Systems companies Ciena (ticker: CIEN) (rated at Buy, $29 price target) and Infinera (INFN) … 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. Its price-to-sales ratio of 1.7 merely matches the industry average for communication equipment makers. 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. 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. 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's main competitors include ADTRAN, Aviat Networks, ADVA Optical Networking, Zayo, Juniper Networks and Comtech Telecommunications. Let's take a closer at the two companies' core businesses, growth trajectories, and headwinds to find out. Learn more. Market data powered by FactSet and Web Financial Group. Now here's the bad: Guidance at Ciena was exceptionally weak, and that weak guidance is destroying Ciena stock in morning trading. 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. 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 . 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. 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. Ciena has a consensus price target of $56.6765, suggesting a potential upside of 7.08%. Together they have raised over 10.1B between their estimated 1.2M employees. Infinera vs. Ciena: Who Will Win the Multimillion-Dollar Deal With Level 3 Communications? Drive down cost per bit and reduce energy consumption with Ciena’s high-performance WaveLogic TM coherent technology, built into the Waveserver family. Infinera currently has a consensus price target of $8.5769, suggesting a potential downside of 6.77%. Smith noted that amid the slowdown in spending, Ciena has "gained share, significant share" over its competition. CenturyLink is using Infinera in the longhaul, but Ciena … 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). So what did Ciena say to cause so much consternation on Wall Street? White Paper. Stock Advisor launched in February of 2002. A commonly heard phrase over the years has been that nobody gets fired for buying from Cisco Systems. That's the bad news for Ciena. Density. Ciena also competes against Acacia Communications . 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. Given Ciena's stronger consensus rating and higher probable upside, analysts clearly believe Ciena is more favorable than Infinera. Ciena also benefited from Verizon's 100G metro rollout in the US and a similar deal with Tata Communications in India. "Work life balance" was the most mentioned Con at Ciena. 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. "Upper management" was the most mentioned Con at Infinera. … Ciena has a more diversified business. That's the good news. Indeed, it seems everyone is already talking about it today -- and selling because of it, too. Ciena's P/S ratio of 1.3 is also below the industry average. Stock Advisor launched in February of 2002. Ciena has fared better with its diversified exposure to fiber optic components, software suites, and transport solutions for the metro and DCI markets. For 2018, analysts see Ciena's revenue and earnings respectively rising 6% and 17% -- so it clearly has steadier growth than Infinera. Infinera expects its revenue to rise about 37% this year to $1.3 billion, but it trades at just 0.6 times that figure. However, contrarian investors might be wondering if either stock could rebound later this year. Infinera mostly provides long-haul wave division multiplexing (WDM) and subsea optical transmission systems. Market data powered by FactSet and Web Financial Group. 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. 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. Ciena is committed to ensuring digital accessibility for people with disabilities. 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. Infinera also sells metro and DCI (data center interconnect) solutions, which improve connections over shorter distances. 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 already mentioned, the headline numbers were good. 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.". Ciena has a better diversified business, decent top and bottom line growth, and lower valuations. Ciena shares are down 10 cents at $23.64 following the downgrade. And reduce energy consumption with Ciena ’ s high-performance WaveLogic TM coherent technology, built into the family. Rating and higher probable upside, analysts plainly believe Ciena is more favorable than Telemanagement! The relevant accessibility standards drive down cost per bit and reduce energy consumption with Ciena ’ s high-performance TM. 10.1B between their estimated 1.2M employees ( NYSE: CIEN ) has unveiled WaveLogic 5 will support 800-Gbps transmission... 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