Ciena Tumbles Despite Beating Views

Ciena (CIEN) on Thursday reported fiscal first-quarter profit and revenue that topped consensus estimates. Ciena stock tumbled ahead of the fiber-optics gear maker’s earnings call with analysts, where it typically issues guidance.




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For the quarter ending Jan. 31, Ciena earnings rose 3% to 66 cents a share on an adjusted basis. Revenue fell nearly 2% to$1.04 billion.

A year earlier, the Hannover, Md.-based maker of optical communications gear, earned 64 cents a share on sales of $1.057 billion. Analysts expected Ciena earnings of 48 cents on sales of $1.02 billion.

Ciena’s fiber optics gear is built into telecom networks and hyperscale data centers operated by internet giants. Telecom customers have been ordering less network gear.

Ciena Stock: Big Gain In 2024

On the stock market today, Ciena stock fell 9.6% to 56.01. Short interest had climbed ahead of the Ciena earnings report. Short sellers borrow shares and sell them in the expectation of a price drop, after which they buy them back at a lower price, return them to the lender, and pocket the difference.

Shares had climbed 36% in 2024 prior to the Ciena earnings report.

Heading into the Ciena earnings report, the company owned a Relative Strength Rating of 90 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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