Ciena Gains After Higher Revenue Forecast: Washington Mover
Ciena Corp. (CIEN), a maker of network equipment for phone companies, gained the most in a month after forecasting fiscal second-quarter revenue that topped some analysts’ estimates.
The shares rose 4.2 percent to $14.01 at the close in New York, after Ciena made the forecast in a statement today reporting first-quarter earnings. That was the biggest increase since Feb. 3. The Linthicum, Maryland-based company’s stock has advanced 16 percent this year.
Ciena, which last month said first-quarter results would suffer from delays in recording international sales, today predicted stronger operating results in the second half of the year. That gives investors more confidence that Ciena’s customers, which include AT&T Inc. (T) and China Mobile Ltd. (941), are spending more than expected in 2012, said Blair King, an analyst with Avondale Partners LLC in Nashville, Tennessee.
“This is one of the first signs that order flows are actually pretty good right now,” said King, who has a “market outperform” rating on Ciena. “Once the projects get recognized in the revenue it sets up a steady state of consistent business that leads to a steadier top-line prospect heading into 2013,” King said in a telephone interview.
The company forecast sales for the period ending April 30 in a range of $435 million to $460 million, according to a statement today. That compared to a $451.5 million average estimate from 19 analysts in a Bloomberg survey.
Ciena reported $416.7 million in revenue for the fiscal first quarter ended Jan. 31, compared with $433.3 million a year earlier. Analysts had estimated $426.3 million.
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