• MetLife (NYSE:MET) shares fell 7.4% after the shares were downgraded by Raymond James Financial on valuation concerns

• Sepracor (NASDAQ:SEPR) shares jumped 26.5% on reports that Japanese firm Dainippon has agreed to acquire the company in a $2.7 billion deal

• Credit Suisse raised its ratings on Research in Motion (NASDAQ:RIMM) and Motorola (NYSE:MOT), expecting benefits from the under-served corporate market, with both likely to benefit from cost cutting measures

• Some reports say AT&T (NYSE:T) is planning an offer to acquire Leap Wireless (NASDAQ:LEAP)

• Pfizer (NYSE:PFE) was ordered to pay a $2.3 billion civil settlement regarding its withdrawn pain medication Bextra and other drugs

• Hovnanian (NYSE:HOV) reported a wider-than-expected fiscal third quarter loss of $2.16 a share, versus Zacks estimates of a $1.60 per share loss as revenues of $387.1 million, were slightly above Zacks estimates of $385 million

• Ciena (NASDAQ:CIEN) reported a narrower than expected fiscal third quarter loss of

...

For Immediate Release

Chicago, IL – August 31, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Brown Foreman (BF.B), Ciena (CIEN), ADC Telecom (ADCT) and Zale Corporation (ZLC). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.

This Week's Events

With just 51 companies scheduled to report, economic news will be at the forefront. The only S&P 500 members on the earnings calendar are Brown Foreman (BF.B) and Ciena (CIEN).

The economic calendar is pretty packed with the August ISM surveys, August employment data and minutes from the last Fed meeting all scheduled to be released. Adding to the potential volatility will be light volume, particularly on Friday afternoon as many traders leave early for the holiday.

...

Ciena Corp. (CIEN) is expected to announce third-quarter on Sept. 3. Based on improved order flow, the company expects to deliver sequential revenue growth. Gross margin is expected to be in the mid-to-high 40% range.

However, higher-than-expected prototype costs are likely to affect quarterly results. Non-GAAP operating expenses are expected to be in the low $80 million range. The company sees its tax obligation to be mostly related to non-US regions.

Ciena’s second-quarter results were disappointing as the sales cycle lengthened due to cautious spending by Tier 1 carriers, given the economic uncertainty. The company’s data networking remained weak. This indicates that Ciena would be better off continuing with its strength in optical products such as core switching rather than diverting attention to data networking such as Ethernet.

The company’s balance sheet was reasonably sound and it exited the second quarter with $1.07 million in cash, short- and

...

We have a neutral rating on Ciena Corp. (CIEN), as the company's FlexSelect platform has been gaining momentum. It allows carriers to transition networks to carrier grade Ethernet. We believe the acquisition of World Wide Packets will further strengthen its base.

The provider of optical networking equipment, software and services diversified beyond emerging carriers, and now counts the world's largest telecom service providers as its customers, including Verizon (VZ), AT&T (T), BT Group (BT) and Qwest Communications (Q).

Ciena's cost cutting efforts will trim operating expenses, helping it achieve breakeven results in the coming quarters.

Moreover, the company has a healthy balance sheet with improving cash metrics. The company exited the current quarter with $922.6 million in cash and short-term investments, compared to $917.0 million in the previous quarter. Long-term debt (convertible notes payable) at the end of the quarter remained at $798.0 million.

However, the company's sales

...

Recently, Linthicum, CIENA (CIEN) Maryland-based, an OEM of optical networking equipment, software, and services announced that its Carrier Ethernet Service Delivery (CESD) platform has been deployed by Clearwire (CLWR) for the newly launched CLEAR 4G mobile WiMAX service.  Clearwire is using Ciena’s LE-311v Service Delivery Switches, CN 5305 Service Aggregation Switches and Ethernet Services Manager software for its 4G backhaul solution. The Ethernet Services Manager’s intelligent software automation will help Clearwire build and deploy large-scale backhaul networks using platforms that can be installed, configured, provisioned and remotely reprogrammed at higher speed, thereby reducing costs and accelerating service delivery.  We believe Ciena’s focus on helping carriers transition to next generation networks places it in one of the fastest growing portions of the telecommunications market. Also Ciena’s Carrier Ethernet platform enables differentiation and provides a competitive advantage to the company. Because Ethernet is a standard, service providers can ...

* Wal-Mart (NYSE:WMT) announced that it plans 22,000 new hirings in its US stores this year. Last year the firm added 33,800 jobs, a tally which includes Sam's Clubs, unlike the prior number. The company's annual meeting is scheduled for Friday

* Prudential (NYSE:PRU) shares declined 2.9% following its $1.25 billion share offering was priced at $39 per share

* Aluminum Corp. of China (NYSE:ACH) may revise its Rio Tinto (NYSE:RTP) $19.5 billion deal before the expiration of its June 14 deadline

* Ciena (NASDAQ:CIEN) reported a fiscal second quarter loss of 25 cents a share, a 16 cent miss, as revenues plunged 40.5% to $144 million* Costco's (NASDAQ:COST) reported its May same-store-sales dropped 7%, more than the expected 6.4% decline

* Goldman Sachs (NYSE:GS) received a Bernstein analyst upgrade due to its capital strength, permitting the firm to take advantage of improving conditions in fixed income, currency and commodity markets

* United Airlines (NASDAQ:UAUA)

...

For Immediate Release

Chicago, IL - June 1, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Shanda Interactive (SNDA) and Layne Christensen (LAYN). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

Ciena (CIEN) is the only S&P 500 (SPX) member reporting this week. Forecasts call for the company to have lost 15 cents per share last quarter.

Joining CIEN will be 73 other companies.

The light earnings calendar will make way for a fairly packed economic schedule. We'll get the latest ISM surveys, more housing data and May employment numbers.

Monday: May ISM manufacturing survey, April construction spending, April personal income and spending Tuesday: April pending home sales, May auto sales Wednesday: ...

Maryland-based Ciena Corp. (CIEN) is an original equipment manufacturer [OEM] of optical networking equipment, software and services. The company's FlexSelect platform has been gaining momentum and we believe the acquisition of World Wide Packets will further strengthen its base. However, Ciena's sales cycle is lengthening as Tier 1 carriers proceed with caution, given the economic uncertainty. With the disappointing fourth-quarter results, we believe it would be difficult for the company to improve or maintain its growth rate given weak economic conditions. Ciena has provided a bleak outlook for the first quarter of 2009. As such, we are reducing our estimates for fiscal 2009 and 2010. We maintain a Hold rating given the company's diminished outlook but lower our six-month price target to $6, given the uncertain macroeconomic conditions. This price is based on P/E multiple of 0.03x our 2009 EPS estimate of $0.18....

Mr. Market stopped in for a few belts and came out one nasty bear and beat bulls mercilessly. Sure, there was a lot of news that would drive most to drink like poor employment data, dismal retail sales, negative comments by housing guru Robert Shiller, warnings of a financial tsunami by Bond Daddy Bill Gross and a poor report by networking giant Ciena. Reality is tough to accept sometimes especially when talking heads in the media are chirping at you every day that “the bottom is in” and to “buy stocks with both hands”. Yesterday media clown in chief, Jim Crammer stated: “rallies are real but sell-offs phony”. He’s busy trying to find that tape to destroy it. Volume increased during the phony [?] sell-off and breadth was as negative as expected. ...

Ciena (CIEN) announced earlier today that it has revised its fiscal fourth-quarter revenue guidance and now expects between $190 million and $210 million.

Shares of the telecom equipment company have slipped by as much as 25% Thursday.

According to CIEN, sales cycles are lengthening and some deployments are slowing as customers stay on their guard in a challenging macroeconomic environment. However, the company has seen no project or order cancellations.

For its fiscal third quarter, revenue advanced 24% year over year to $253.2 million. Profit declined from the previous year.

CIEN is currently a Zacks #4 Rank company. Earnings estimates for this year, ending October 2008, are a penny lower than 2 months ago while expectations for next year, ending October 2009, are down 11 cents in that time.

"CIEN" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research