Networking Equipment Maker Ciena Drops After Results
Ciena Corp (CIEN:US) saw its shares fall more than 13% on Tuesday after the networking equipment and software services supplier reported results for its second fiscal quarter.
The company reported an adjusted profit per share of $0.74 on revenue of $1.13 billion, topping the analyst consensus for earnings of $0.60 per share on sales of $1.09 billion.
Ciena noted a 25% year-over-year increase in sales for its two biggest business segments – Networking and Converged Packet Optical. Revenue in the third largest business unit – Routing and Switching – rose 19% YoY to $130.4 million.
"We delivered outstanding results for the fiscal second quarter as we were able to ship more to customers with continued improvements in supply chain dynamics," said Gary Smith, president and CEO of Ciena.
"We are confident in our ability to take market share given our backlog and strategic industry position with market-leading technologies and an expanding addressable market."
The company’s adjusted gross margin expanded by 70 basis points to 43.7% YoY, ahead of the Street consensus of 42.4%.
Ciena didn’t offer any forward-looking guidance or commentary.
Given Tuesday’s selloff, Ciena shares are now down more than 16% year-to-date despite a surge in the S&P 500.
Congressman Ro Khanna was the only one that reported trades involving Ciena shares since the start of 2022. Most recently, he reported a sale of CIEN shares on June 27, 2022, when the stock closed at $46.63.
The CIEN stock was seen trading just over $42 apiece on Tuesday.
