Shares of Ciena Corp. (CIEN, Financial) fell almost 5% on Thursday after reporting second-quarter revenue of $894.05 million and earnings of 76 cents per share. It beat analyst’s earnings estimates by 24 cents and surpassed revenue expections by $4.63 million.
"In this uncertain environment, we delivered industry leading financial performance during our second quarter, including strong revenue and outstanding profitability," CEO Gary Smith said. "Our strategy, centered around innovation, diversification and global scale, has resulted in a resilient business capable of navigating challenging times and delivering strong shareholder value over the long term."
Total revenue was up from a year ago. By region, sales in the Americas were $650.4 million, revenue in Europe, the Middle East and Africa was $141.4 million and in Asia Pacific sales came in at $102.3 million.
The adjusted operating margin was 17.9%, up from 12.7% in the comparable period and the adjusted earnings before interests, taxes, depreciationa and amortization was $183 million, up from $131.4 million in the second quarter of fiscal 2019.
Looking at the financial position, the company had cash and investments of $988.5 million, while the cash flow from operations reached $91.2 million.
At the end of March, Jeremy Grantham (Trades, Portfolio) boosted his position 49% to 56,043 shares, while Jim Simons' firm cut its holding 76% to 283,974 shares and Chuck Royce (Trades, Portfolio) trimmed his position by 28% to 103,906 shares.
Shares of The J. M. Smucker Co. (SJM, Financial) fell almost 5% after reporting fourth-quarter revenue of $2.09 billion and earnings of $2.57 per share. The company beat revenue expectations by $40 million and earnings by 29 cents.
"Our strong response is reflected in our exceptional fourth quarter results, with record-setting net sales and adjusted earnings per share,"CEO Mark Smucker said. "This exceptional growth is a testament to the strength of our brands and consumer-centric strategy, as consumers turned to trusted products to stock their kitchens as stay-at-home orders were implemented across North America."
The gross profit rose 14% to $96 million on the back of increased contributions from volume/mix and reduced input costs. Meanwhile, the operating income more than doubled to $193.1 million due to a goodwill impairment charge in the prior year and the increase in gross profit.
The adjusted gross profit increased 12% to $84.8 million, and the adjusted operating income increased 22% to $77.9 million.
Looking at the financial position, the company generated cash from operating activities of $287.7 million, compared to $274.2 million in the prior year. There was a decrease in working capital because of an increase in accounts payable and also a lower inventory level.
Further, the free cash flow totaled $211.3 million, compared to $181.6 million in the prior-year quarter.
Mario Gabelli (Trades, Portfolio) trimmed his holding by 0.2% to 253,155 shares, but Ray Dalio (Trades, Portfolio) initiated a new position with 6,261 shares and Simons' firm boosted its portfolio by 186% to 470,781shares.
Disclosure: The author holds no positions in any stocks mentioned.
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