Ciena Corporation (NYSE:CIEN) early Wednesday posted weaker than expected first quarter earnings results, as both profit and revenue failed to meet analysts’ view.
Written by StockNews.com
The Hanover, MD-based networking giant reported Q1 earnings per share (EPS) of $0.26, which was $0.03 worse than the Wall Street consensus estimate of $0.29.
Revenues rose 8.4% from last year to $621.5 million, also well below the $632.29 million that analysts were looking for, and at the low end of the company’s guidance range of $615 to $645 million.
Ciena noted that Networking revenues rose 9% in the latest period, with North American sales up 3%, and Asia Pacific region revenues surging 59%.
Its adjusted gross margin for Q1 came in at 44.9%, right in-line with the company’s mid-40% guidance.
Looking ahead, CIEN forecast Q2 revenues of $680 to $710 million, which straddles Wall Street’s current $690.72 million estimate, and gross margins to stay in the mid-40% range.
The company commented on its results and outlook via press release:
“Our overall first quarter performance demonstrates our ability to grow and capture market share across geographies, market segments and product lines, reflecting the investments we’ve made to diversify our business in these areas,” said Gary B. Smith, president and CEO, Ciena. “Our strategic investments and differentiated portfolio are providing us strong momentum in the market, and as a result we believe that we are well-positioned to deliver on our fiscal 2017 financial targets.”
Investors weren’t impressed with Ciena’s results, as the stock fell $0.67 (-2.56%) in premarket trading Wednesday. Year-to-date, CIEN had gained 7.21% prior to today’s report, versus a 6.03% rise in the benchmark S&P 500 index during the same period.
CIEN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #7 of 53 stocks in the Technology – Communication/Networking category.
