Ciena Stock Falls Despite Earnings Beat Due to In-Line Guidance
Ciena (CIEN) fell nearly 10% despite reporting better-than-expected earnings and revenue for its fiscal third-quarter. The stock's decline was driven by in-line guidance for the next quarter, which failed to meet investor expectations for acceleration. Ciena reported adjusted EPS of $2.11 against a consensus estimate of $1.72, with revenue reaching $1.67 billion versus an estimated $1.63 billion. Arista Networks (ANET) rose 3%, while Cisco Systems (CSCO) remained nearly flat and the iShares U.S. Technology ETF (IYW) traded higher, indicating that Ciena's drop was not a sector-wide issue but rather company-specific. The stock had surged over 50% this year before today’s decline. Ciena guided for $1.75 billion in Q4 revenue with a ±$50 million range—meeting analyst expectations—and raised its full-year guidance to $6.42 billion, up 35%. However, the lack of upside surprised investors who had priced in stronger growth.
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