Ciena Stock Drops After Q3 Sales Miss

Ciena Corporation CIEN delivered better than estimated adjusted earnings for the third quarter. However, its revenue fell shy of estimates.

The company delivered net income of $33.5 million, or $0.23 per share, up from $23.6 million, or $0.19 per share, in the year-ago quarter. On a non-GAAP basis, profit grew from $50.7 million or $0.37 a share, to $67.6 million, or $0.42 a share, in the previous year period. This is higher the Street estimates of $0.38 a share.

President and CEO Gary Smith said, "Through strategic investments to broaden our portfolio, market application and customer and geographic base, we have positioned Ciena to deliver sustainable long-term growth and increased profitability."

Going forward, the company expects revenue between $700 and $730 million for the fourth quarter. The mid-point of $715 million is below the Street predictions of $722.07 million.

The stock traded down $0.95, or 4.43 percent, to $20.50 in the pre-market on Thursday.