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Ciena Earnings: CIEN Stock Plunges 25% on Pandemic Pressure Warning

Ciena (NYSE:CIEN) earnings for the networking company’s fiscal third quarter of 2020 have CIEN stock falling hard on Thursday. That’s despite its adjusted earnings per share of $1.06 beating out Wall Street’s estimate of 83 cents. Its revenue of $976.71 million also comes in above analysts’ estimate of $971.77 million.

Ciena (CIEN) sign in Silicon Valley.
Source: Michael Vi / Shutterstock.com

Now, let’s take a more in-depth look at the most recent Ciena earnings report.

  • Adjusted per-share earnings are up 49.3% from 71 cents in the fiscal third quarter of 2019.
  • Revenue for the quarter comes in 1.7% higher than the $960.61 million reported in the same period of the year prior.
  • Operating income of $188.04 million is a 50.1% increase year-over-year from $125.3 million.
  • The Ciena earnings report also has it bringing in a net income of $142.27 million.
  • That’s a 64% jump from the company’s net income of $86.75 from the same time last year.

Gary Smith, president and CEO of Ciena, said the following in the earnings report.

“We delivered outstanding financial results in the third quarter, reflecting our continued innovation, market leadership and strong competitive position in an uncertain macro environment. Although COVID-related market dynamics have resulted in an orders slowdown and are likely to adversely impact our revenue for a few quarters, we are confident in our ability to continue executing on our strategy and expanding our market leadership.”

Ciena doesn’t discuss guidance in its current earnings report. That’s likely due to the novel coronavirus. Many other companies are withholding outlooks because of the pandemic.

CIEN stock was down 25.2% as of Thursday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/ciena-earnings-hit-cien-stock/.

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