Ciena Shares Jump After Profit, Sales Top Analyst EstimatesScott Moritz
Ciena Corp., a provider of fiber-optic networking gear for carriers such as AT&T Inc., rose the most in almost three months after posting profit and sales that beat analysts’ estimates.
Excluding some items, earnings were 23 cents a share in the fiscal third quarter, the Hanover, Maryland-based company said today in a statement. Analysts had projected 16 cents on average, according to data compiled by Bloomberg. Sales climbed to $538.4 million in the period, which ended on July 31. That topped the $533.8 million estimate.
Ciena is increasing its market share and expanding into new areas, helping it deliver more sustainable financial performance, Chief Executive Officer Gary Smith said in an interview. The company expects fourth-quarter sales to range from $550 million to $580 million, compared with the $551.7 million seen by analysts.
“I don’t see an increase in carrier spending -- what we do see is a shift in what the carriers are spending it on,” Smith said. Areas such as mobile-to-landline network connections and data-center equipment are hot spots, he said.
The shares rose 14 percent to $23.54 at the close in New York, the biggest one-day gain since June. The stock has advanced 50 percent this year.