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Market Preview: The Bulls Finally Blink (Correct)

"Frankly, the results from 4Q and any near-term guidance from the company on the conference call are somewhat irrelevant; the key will be the initial pronouncements and plan from new CEO Robert Hanson," wrote the firm, which reiterated a hold rating on the stock. "We would expect a focus on store productivity, pruning back locations, and potential shifts in key category penetration."

Citing a drag from January clearance sales, Brean Murray is expecting earnings of 32 cents a share from American Eagle, 3 cents below the consensus view. "We believe comps remained decent, but margins were further challenged due to unseasonably warm weather; we believe the company continued to have to aggressively clear inventory overages after a tough Xmas season," the firm said.

Check out TheStreet's quote page for American Eagle for year-to-date share performance, analyst ratings, earnings estimates and much more.

Ciena (CIEN) is also due to open its books before the open, and Wall Street is looking for a loss of 5 cents a share in the optical networker's fiscal first quarter on revenue of $417.2 million.

Shares of Linthicum, Md.-based Ciena are up 20% so far in 2012, but that surge still leaves them down more than 45% in the past year along with sector mates like Finisar (FNSR), off 53%; and JDS Uniphase (JDSU), lower by 49%. The group continues to wait for a washout as every time business conditions start to improve, a setback seems to follow shortly after.

Finisar gave a weak outlook last week, so there should be some bad news priced in, especially after Tuesday's broad sell-off that pushed Ciena's stock down 2.6% to close at $13.44. Also worth noting is that Ciena has a pretty volatile track record vs. analyst expectations. The company has missed in three of the past five quarters, including reporting a profit of 3 cents a share last time around when the consensus was for earnings of 6 cents.

Those same analysts are pretty bullish right now though with 18 of the 26 ratings on the stock either strong buy (9) or buy (9), and the 12-month price target at $17.

Check out TheStreet's quote page for Ciena for year-to-date share performance, analyst ratings, earnings estimates and much more.

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