Ciena surges after 'very strong' results, analysts praise 'impressive' upside
As the IT networking business Ciena (NYSE:CIEN) reported solid results for its first fiscal quarter,
The company's shares are currently trading more than 11% higher pre-market on Monday.
Ciena beat the average analyst forecast of $0.36 per share on sales of $959.4 million by reporting EPS of $0.64 on $1.06 billion in revenue.
The two biggest business units, Converged Packet Optics and Networking Platforms, saw revenues rise by 36% and 25% year over year, respectively.
'We produced record revenue in the first quarter, demonstrating ongoing incremental improvement in the supply chain environment
and robust customer demand for our market-leading technology,' said Gary Smith, president and CEO of Ciena.
We are confident in our ability to continue gaining market share thanks to the excellent momentum
throughout our whole company, supported by solid core drivers and visibility offered by our backlog.
Expanding margins particularly impressed analysts. Ciena outperformed expectations by 190 basis points, reporting an adjusted gross margin of 43.7%.
The findings were "extremely strong," according to experts at Vital Knowledge, highlighted by "exceptional upside" across all the important indicators.
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