Ciena Corp Reports Strong Q3 Results, Stock Surges
Ciena Corp reports better-than-expected earnings and significant revenue growth in Q3. The stock shows signs of recovery following the positive financial performance.
Ciena Corp, a leading optical networking company, has seen its shares rise to a 2 1/2-month high in premarket trading on Thursday following the release of its fiscal third-quarter results. The company reported better-than-expected earnings, citing increased customer activity and a strong backlog.
Ciena Corp's net income for the quarter ending July 29 has risen to $29.7 million, or 20 cents per share, from $10.5 million, or 7 cents per share, in the same period last year. Adjusted earnings per share came in at 59 cents, beating the FactSet consensus of 51 cents.
The company also experienced significant revenue growth, with total revenue reaching $1.07 billion, a 23% increase compared to the same quarter last year. This figure surpassed the FactSet consensus of $1.04 billion. The growth was primarily driven by a 26.4% increase in products revenue and a 10.3% increase in services revenue.
Ciena Corp's cost of goods sold rose by 17.4%, which was outpaced by the revenue growth. This led to an improvement in the gross margin, which increased to 42.0% from 39.3%.
Despite a year-to-date drop of 15.3% as of Wednesday, Ciena Corp's stock is showing signs of recovery following the positive earnings report. In contrast, the S&P 500 has seen an overall gain of 17.6%.