Ciena Beats Earnings Estimates Thanks to AI Demand. The Stock Is Falling

Dow Jones03-05 20:34

Shares of Ciena fell Thursday even after the networking company reported better-than-expected earnings and raised its guidance for the fiscal year. High expectations may have been the culprit.

Ciena posted adjusted earnings of $1.35 a share for its fiscal first quarter, surpassing analysts' consensus estimate of $1.17, according to FactSet. Revenue totaled $1.43 billion, up 33% from last year and above Wall Street's call for $1.4 billion.

Shares dropped 4% in premarket trading Thursday. The stock was up 47% this year as of Wednesday's close, riding a wave of demand for cabling and communications systems at artificial-intelligence data centers.

"We delivered a very strong fiscal first quarter, driven by focused execution and unprecedented, broad-based demand as we enable customers to monetize their AI investments," CEO Gary Smith said in a statement.

Ciena lifted its fiscal-year revenue forecast to $5.9 billion to $6.3 billion from a previous range of $5.7 billion to $6.1 billion. The company expects an adjusted gross margin of 43.5% to 44.5%, up at the midpoint from 42% to 44% previously.

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Comments

  • romanc9
    03-05 20:47
    romanc9
    Same for alot of others which beat the earning, like pltr, apple, amazon to name afew. Market is not for weak handed people. I believed those people who sold down the counters are to panic weak hands. So hold and stay cool. Good counters will return. 
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