Ciena shares rise on strong quarterly results
Optical networking firm posts better-than-expected profit and revenue, lifts full-year outlook. Shares gain 6% in early trade.
Ciena Corp. shares climbed 6% in premarket trading on Tuesday after the optical networking equipment maker reported fiscal second-quarter results that exceeded analyst expectations.
The Hanover, Maryland-based company posted adjusted earnings of $1.22 per share, compared with a loss of 13 cents in the same period last year. Revenue rose 11% year-over-year to $1.36 billion, topping the $1.29 billion consensus estimate compiled by Refinitiv.
Ciena’s performance was driven by stronger demand for its optical transport and packet networking solutions, particularly in North America and Europe. The company also highlighted robust contributions from its software and services segment.
Management raised its full-year guidance, now expecting adjusted earnings of $4.20 to $4.50 per share on revenue of $5.4 billion to $5.6 billion. The prior outlook called for earnings of $3.80 to $4.20 per share and revenue of $5.1 billion to $5.4 billion.
Analysts at Jefferies maintained their buy rating on Ciena, citing the improved outlook and sustained demand in key markets. The stock has gained roughly 25% over the past 12 months, outperforming the broader technology sector.
Ciena’s results underscore the resilience of enterprise and carrier spending on high-speed connectivity infrastructure amid ongoing digital transformation trends.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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