CIEN Stock Falls As Earnings Top Views But Revenue Misses

Ciena (CIEN) on Monday reported January-quarter profit that topped estimates while revenue missed Wall Street targets. CIEN stock edged up as management said it expects revenue growth to pick up in the back half of fiscal 2022.

Ciena earnings for the quarter ending Jan. 29 were 85 cents a share, up 9% from a year ago. Revenue for its fiscal first quarter climbed 11% to $844.4 million, the company said.

A year earlier, Ciena earned 52 cents a share on sales of $757 million. Analysts expected Ciena earnings of 45 cents on sales of $854 million.

Ciena reported earnings before the market open. CIEN stock edged up 0.3% to 66.12 in early trading on the stock market today.

CIEN Stock Pre-Announced Some Fiscal Q1 Results

The Hanover, Md.-based maker of optical communications gear pre-announced some financial metrics on Feb. 15.

Ciena said it expects revenue in a range of $930 million to $970 million in the April quarter amid supply chain constraints. At the mid-point of guidance that missed consensus estimates of $961 million.

However, Ciena management said it still expects to hit 11% to 13% revenue growth in fiscal 2022, with a strong second half.

CIEN stock has retreated 13% in 2022. Heading into the Ciena earnings report, the owned a Relative Strength Rating of 93 out of a best-possible 99, according to IBD Stock Check-up.

CIEN stock holds an entry point of 78.38.

Ciena’s gear is built into telecom networks and hyperscale data centers. In addition, the company competes against Infinera (INFN) and Acacia Communications, acquired by Cisco Systems (CSCO). Ciena may gain from U.S. government political pressure on China’s Huawei, analysts say.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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