Ciena stock rose Thursday as its fiscal second-quarter earnings and revenue fell from the year-earlier period but still topped estimates. Ciena’s (CIEN) fiscal third-quarter revenue outlook met expectations, despite the resurgence of the coronavirus pandemic in India, one of its biggest markets.
Hanover, Md.-based Ciena reported earnings for the quarter ending May 1 before the market open.
Ciena earnings on an adjusted basis fell 18% to 62 cents from the year earlier period. Revenue fell 7% to $833.9 million, the company said.
“India, despite the Covid outbreak, grew quarter over quarter and year to year with strengthening orders and improving Huawei replacements,” Needham analyst Alex Henderson said in a note to clients.
Analysts expected Ciena to report profit of 48 cents a share on sales of $829 million. A year earlier, Ciena earnings were 76 cents a share on sales of $894 million.
Ciena Stock: Revenue Outlook Meets Expectations
For its fiscal third quarter, Ciena said it expects revenue of $965 million at the midpoint of its outlook, in line with expectations.
Ciena stock jumped 7.3% to close at 58.38 on the stock market today.
Heading into the Ciena earnings report, the stock had an IBD Relative Strength Rating of 29 out of a best-possible 99, according to IBD MarketSmith analysis.
Ciena’s gear is built into telecom networks and hyperscale data centers. In addition, the company competes against Infinera (INFN), and Acacia Communications, recently acquired by Cisco Systems (CSCO).
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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