Ciena stock plummets after downbeat outlook, as customers push out orders
Shares of Ciena Corp. (CIEN) were falling 11.5% in morning trading Tuesday after the networking company gave a downbeat outlook for the current quarter, which overshadowed better-than-expected results for the period that recently concluded. The company generated fiscal second-quarter net income of $57.7 million, or 38 cents a share, compared with $38.9 million, or 25 cents a share, in the year-earlier period. On an adjusted basis, Ciena posted 74 cents a share in earnings, while analysts were expecting 61 cents a share. Revenue rose to $1.13 billion from $949.2 million, whereas analysts had been expecting $1.09 billion. On Ciena's earnings call, Chief Financial Officer James Moylan said that the company expects $1 billion to $1.08 billion in revenue for the fiscal third quarter. Analysts were expecting $1.1 billion. The company also now expects 18% to 22% revenue growth for the full fiscal year, whereas its prior range was for 20% to 22% growth. "We are currently in a transition period as we move towards an environment where supply and order flow are more in balance with each other," Moylan said. "This is driving some customers to push out their requested shipment days."
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June 06, 2023 10:42 ET (14:42 GMT)
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