Ciena on Thursday reported fiscal second-quarter profit and revenue that fell from a year earlier but topped consensus estimates. The company lowered its full-year revenue outlook for Ciena stock.
For the quarter ending April 30, Ciena earnings dropped 63% to 27 cents a share on an adjusted basis. Revenue fell 19.6% to $910.8 million.
A year earlier, the Hannover, Md.-based maker of optical communications gear, earned 74 cents a share on sales of $1.13 billion. Analysts expected Ciena earnings of 15 cents on sales of $896 million.
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. Long-term, some analysts expect upside from the data center business.
Ciena Stock: Guidance Lowered
Further, Ciena lowered its full year fiscal 2024 revenue outlook to $1 billion from a range of $4 billion to $4.3 billion. July quarter sales guidance was lowered to $880 million to $960 million versus expectations $1 billion.
On the stock market today, CIEN stock edged up 0.7% to close at 48.56.
Shares had climbed 8% in 2024 prior to the Ciena earnings report. In addition, Ciena stock owned a Relative Strength Rating of 25 out of a best-possible 99, according to IBD Stock Checkup.
CIEN stock traded near both its 50-day and 200-day moving averages, retaking those levels on Wednesday.
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