The Zacks Communication - Components industry appears well poised to capitalize on the healthy demand trends driven by the fast-track 5G deployment and the transition to cloud and fiber networks. However, volatility in prices due to elevated customer inventory levels, high capital expenditure for infrastructure upgrades, margin erosion, geopolitical conflicts and tariff wars has dented the industry’s profitability.Nevertheless, Corning Incorporated (GLW) , Ciena Corporation (CIEN) and Ooma, Inc. (OOMA) are ...

Viav Solutions (VIAV) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.79%. A quarter ago, it was expected that this communications equipment company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of +15.38%.Over the last f ...

Core Insights - Corning (GLW) reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, and up from $0.57 per share a year ago, representing an earnings surprise of +3.11% [1] - The company achieved revenues of $4.41 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.08% and increasing from $3.87 billion year-over-year [2] - Corning has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +1.52%, with actual earnings of $0.67 per share against an expected $0.66 [1] - The current consensus EPS estimate for the upcoming quarter is $0.65, with projected revenues of $4.18 billion, and for the current fiscal year, the estimate is $3.03 on revenues of $18.09 billion [7] Stock Performance - Corning shares have increased approximately 25.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Outlook - The Communication - Components industry, to which Corning belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Ciena (CIEN) - Ciena currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price increases, with a 31.78% rise over the past quarter and a remarkable 172% increase over the last year, compared to the S&P 500's 1.25% and 14.72% respectively [6] Price Performance - Over the past week, Ciena shares increased by 5.58%, outperforming the Zacks Communication - Components industry, which rose by 1.73% [5] - The monthly price change for Ciena is 0.38%, while the industry average is 1.25%, indicating relative strength [5] Trading Volume - Ciena's average 20-day trading volume is 1,867,587 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, 8 earnings estimates for Ciena have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.36 to $5.33 [9] - For the next fiscal year, 5 estimates have also moved higher, reflecting positive sentiment around the company's earnings potential [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Ciena is positioned as a solid momentum pick, meriting attention from investors seeking growth opportunities [11]

Core Insights - Ciena Corporation (CIEN) stock has increased by 42.6% over the past three months, significantly outperforming the Zacks Computer & Technology sector and the Zacks Communication - Components industry, which grew by 4.4% and 26.7% respectively [1][9] - The company anticipates fiscal 2026 revenues between $5.7 billion and $6.1 billion, indicating a growth rate of approximately 24% at the midpoint, an increase from the previously projected 17% [14] Company Performance - Ciena's shares have risen 19.6% in the past month, driven by demand from AI infrastructure, cloud expansion, and data center interconnects [1][9] - The company has a 52-week high of $261.13, supported by a $5 billion backlog, including $3.8 billion in hardware and software [4][12] Competitive Positioning - Ciena has outperformed peers such as Cisco Systems, Nokia, and Arista Networks, with Cisco and Nokia gaining 7.9% and 15.5% respectively, while Arista fell by 8.7% [2] - The company is the only provider offering a 1.6 terabit WAN solution and expects to maintain its lead in next-generation optical technology for at least two years [5] Growth Drivers - Sustained demand from cloud expansion, growing data center interconnect deployments, and the rapid buildout of AI infrastructure are key factors driving Ciena's performance [4][9] - Ciena is investing in the data and optical fiber market to capitalize on bandwidth demand from network service providers, with a focus on coherent optical systems and interconnects [7][11] Financial Outlook - Ciena's gross margins are expected to rise to around 43% in fiscal 2026, with operating margins improving to about 17% [14] - The Zacks Consensus Estimate for CIEN's earnings for fiscal 2026 has been revised upward, reflecting positive sentiment in the market [16] Valuation Metrics - Ciena trades at a forward 12-month price-to-earnings (P/E) ratio of 52.44, which is above the industry average of 34.38, supported by its strong exposure to cloud expansion and AI-driven network upgrades [15]

Group 1 - Corning (GLW) is currently outperforming the Computer and Technology sector with a year-to-date return of 87.3%, compared to the sector average of 27.4% [4] - The Zacks Rank for Corning is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 1.9% increase in the consensus estimate for full-year earnings over the past 90 days [3][4] - Corning belongs to the Communication - Components industry, which has an average year-to-date gain of 110.5%, indicating that Corning is slightly underperforming its industry [6] Group 2 - CACI International (CACI) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date increase of 33.5% and a Zacks Rank of 2 (Buy) [5][7] - The Computer - Services industry, to which CACI belongs, has a lower average year-to-date return of +3.8% and is ranked 82 in the Zacks Industry Rank [7]

分组1 - Ciena reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.54 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company achieved revenues of $1.35 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 4.95%, and up from $1.12 billion year-over-year [2] - Ciena has outperformed the S&P 500 significantly, with shares increasing by about 161.6% since the beginning of the year compared to the S&P 500's gain of 17.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $1.24 billion, and for the current fiscal year, it is $4.43 on revenues of $5.52 billion [7] - The Communication - Components industry, to which Ciena belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Ciena's favorable estimate revisions trend prior to the earnings release has resulted in a Zacks Rank 2 (Buy), suggesting that the stock is expected to outperform the market in the near future [6]

Core Viewpoint - Viav Solutions has shown strong stock performance, with an 84.1% increase since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Communication - Components industry [1] Financial Performance - Viav Solutions has consistently exceeded earnings expectations, reporting an EPS of $0.15 against a consensus estimate of $0.13 in its latest earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $0.67 per share on revenues of $1.4 billion, reflecting a 42.55% increase in EPS and a 28.72% increase in revenues [3] - The next fiscal year forecasts earnings of $0.75 per share on revenues of $1.51 billion, indicating a year-over-year change of 12.19% in EPS and 8.18% in revenues [3] Valuation Metrics - Viav Solutions currently trades at 27.6 times the current fiscal year EPS estimates, below the peer industry average of 35.1 times [7] - On a trailing cash flow basis, the stock trades at 29.1 times, compared to the peer group's average of 13.3 times, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - The company holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Viav Solutions has a Value Score of D, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Competitive Position - Viav Solutions remains a strong choice within its industry, with peers like Ooma, Inc. also showing solid performance, including a Zacks Rank of 2 (Buy) and strong earnings expectations [10][11] - The Communication - Components industry is positioned in the top 19% of all industries, indicating favorable conditions for both Viav Solutions and Ooma, Inc. [12]

分组1 - Ooma reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and up from $0.17 per share a year ago, representing an earnings surprise of +22.73% [1] - The company achieved revenues of $67.63 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.06%, and an increase from $65.13 million year-over-year [2] - Ooma has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 16.5% since the beginning of the year compared to the S&P 500's gain of 16.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $69.09 million, and for the current fiscal year, it is $0.88 on revenues of $268.07 million [7] - The Communication - Components industry, to which Ooma belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Core Viewpoint - ADTRAN Holdings reported mixed Q3 2025 results, with revenues exceeding estimates but net income falling short, highlighting strong demand yet facing macroeconomic challenges [2][3]. Financial Performance - The company recorded a net loss of $10.3 million or 12 cents per share, an improvement from a net loss of $33.3 million or 38 cents per share in the same quarter last year, attributed to revenue growth [3]. - Non-GAAP earnings were $3.7 million or 5 cents per share, compared to a net loss of $5.3 million or 7 cents per share a year ago, missing the Zacks Consensus Estimate by one cent [4]. - Total revenues increased to $279.4 million from $227.7 million year-over-year, driven by operational execution and demand for advanced solutions in cloud, AI, and edge computing, surpassing the consensus estimate of $275 million [5]. Revenue Breakdown - Network Solutions generated $232.5 million in revenues, up from $181.5 million in the prior-year quarter, while Services and Support revenues were $46.9 million, slightly up from $46.2 million [6]. Profitability Metrics - Non-GAAP gross margin improved to 42.1% from 41.1% year-over-year, and non-GAAP operating income surged to $15.1 million from $0.5 million, reflecting respective margins of 5.4% and 0.2% [7]. Cash Flow and Liquidity - In the first nine months of 2025, ADTRAN generated $87.5 million in cash from operating activities, down from $101.1 million in the prior-year period. As of September 30, 2025, the company had $93.7 million in cash and cash equivalents against $25.9 million in non-current lease obligations [8]. Future Outlook - For Q4 2025, ADTRAN anticipates revenues between $275 million and $285 million, with a non-GAAP operating margin expected to range from 3.5% to 7.5% [9]. Market Position - ADTRAN Holdings holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [12]. - The company is part of the Zacks Communication - Components industry, where competitor Viav Solutions reported a revenue increase of 25.6% year-over-year, indicating a positive trend within the sector [13].