NEW YORK - Ciena Corporation (NYSE:CIEN), a leader in networking systems, services, and software, reported a significant earnings beat for its fiscal second quarter, sending its shares up 7% in response to the news.
The company announced an adjusted EPS of $0.27, surpassing analyst expectations of $0.14. Revenue for the quarter was $910.8 million, also beating the consensus estimate of $895.8 million.
Despite a challenging environment marked by service providers managing existing inventory, Ciena's performance highlighted the company's resilience. The reported revenue, however, represented a decline from the $1.13 billion reported in the same quarter last year.
The company's GAAP net loss was -$16.8 million, or -$0.12 per share, a contrast to the net income of $57.7 million, or $0.38 per share, from the prior year's fiscal second quarter. On an adjusted basis, net income fell to $39.4 million from $110.4 million YoY.
"Our fiscal second quarter performance underscores the strength in our business amid a challenging near-term environment as service providers continue to work through existing inventory," said Gary Smith, president and CEO of Ciena.
“With continued robust growth in bandwidth demand, we remain focused on extending our leadership in optical as a foundation for expanding our addressable market.”
In addition to the robust earnings report, Ciena also returned value to shareholders by repurchasing approximately 1.1 million shares of common stock for an aggregate price of $57.0 million during the quarter.
The positive market reaction, as indicated by the 7% rise in stock price, reflects investor confidence in Ciena's financial health and strategic direction.
The company's strong earnings beat is a testament to its ability to navigate a complex market landscape and maintain a solid financial performance.
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