Shares of Ciena sank Thursday after the company reported April-quarter profit and revenue that missed analyst estimates. Management's revenue guidance for Ciena stock came in well below expectations amid supply chain constraints.
"Results and guidance show the remarkably wide chasm between supply and demand has yet to abate, intensifying the narrative around double-ordering and creating uncertainty for near-term results," said Raymond James analyst Simon Leopold in a report.
He added: "Management offered a disappointing forecast with blame entirely on supply chain constraints and not on demand. We suspect management has erred on the conservative side."
Ciena earnings for its fiscal second quarter were 50 cents a share, down 19% from a year ago. Revenue climbed 14% to $949.2 million, the company said.
A year earlier, Ciena earned 62 cents a share on sales of $834 million. Analysts expected earnings of 54 cents a share on sales of $951 million for Ciena stock.
The Hanover, Md.-based maker of optical communications gear reported earnings before the market open. Shares of Ciena stock fell 1.3% to close at 50.68, clawing back from bigger losses, on the stock market today.
Ciena Stock: Revenue Guidance Light
For its fiscal third quarter, Ciena said it expects revenue of $900 million at the mid-point of guidance versus consensus estimates for $1.08 billion in sales.
Ciena stock has retreated more than 34% thus far in 2022. Heading into the Ciena earnings report, the company owned a Relative Strength Rating of 36 out of a best-possible 99, according to IBD Stock Checkup.
Ciena's gear is built into telecom networks and hyperscale data centers. In addition, the company competes against Infinera and Acacia Communications, acquired by Cisco Systems. 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.
