Ciena on Monday reported January-quarter profit that topped estimates while revenue missed Wall Street targets. CIEN stock plunged as the company's revenue guidance missed views.
Ciena earnings for its fiscal first quarter ending Jan. 29 were 85 cents a share, up 9% from a year ago. Revenue for the period 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 tumbled 10.9% to close at 58.76 on the stock market today.
CIEN Stock Pre-Announced Some Results
The Hanover, Md.-based maker of optical communications gear had pre-announced some financial metrics on Feb. 15.
Ciena said it expects revenue in a range of $930 million to $970 million in its fiscal second quarter ending in April amid supply chain constraints. The midpoint of the company's guidance at $950 million missed analyst 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.
Including Monday's action, CIEN stock has retreated more than 23% thus far 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 Checkup.
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 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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