Ciena Posts Upbeat Q3 Earnings, But Revenue Misses Estimates

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Ciena Corporation
CIEN
reported better-than-expected earnings for its fiscal third quarter, but the company's sales missed analysts' estimates. The Hanover, Maryland-based company reported a quarterly profit of $23.6 million, or $0.19 per share, compared to $16.2 million, or $0.15 per share, in the year-ago period. Excluding certain items, the company's earnings increased to $0.37 per share from $0.32 per share. Its revenue declined to $602.9 million from $603.6 million. However, analysts were expecting earnings of $0.34 per share on revenue of $629.9 million. The average estimate among 17 Estimize users was for earnings of $0.34 per share and revenue of $627.11 million. Its gross margin expanded to 44.8 percent from 43.7 percent, while operating margin widened to 7.4 percent from 6.1 percent. "We delivered strong financial performance in our fiscal third quarter, including increased profitability and cash generation, demonstrating our ability to deliver on our business model and drive continued operating leverage," said Gary B. Smith, president and CEO of Ciena. "Despite short-term revenue headwinds related to the timing of network implementations at certain large service provider customers, fundamental demand drivers for our business remain strong. In fact, we now expect to exceed 10% adjusted operating margin for the full fiscal year." Ciena named François Locoh-Donou as its senior vice president and chief operating officer. The company expects Q4 revenue of $665 million to $700 million, versus analysts' estimates of $629.9 million. Ciena shares gained 3.60 percent to $23.30 in pre-market trading.
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Posted In: EarningsNewsGuidanceManagementprofit
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