Ciena (CIEN) announced its fiscal second-quarter results on Thursday, revealing earnings that fell short of analyst estimates, while revenue modestly exceeded projections. Following the report, Ciena’s stock dropped sharply.
For the quarter ending April 30, Ciena posted adjusted earnings of 42 cents per share, a 55% increase from 27 cents a year earlier. Revenue rose 24% to $1.13 billion, up from $910.8 million in the same period last year. Analysts had expected earnings of 52 cents per share and revenue of $1.093 billion.
Ciena’s fiber optic equipment is critical for telecom networks and large-scale data centers used by major internet companies. However, the company noted a slowdown as telecom customers have reduced orders for network gear.
Looking ahead, Wall Street expects Ciena’s revenue for the July quarter to be about $1.109 billion. The company typically provides more detailed guidance during its earnings calls.
Following the earnings release, Ciena’s shares fell 6.7% to $78.25 in early trading, testing a key technical support level. Before this report, the stock had gained roughly 1% year-to-date. Ciena held a Composite Rating of 66 out of 99, indicating moderate technical strength prior to the announcement.
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