Ciena shares rise as Q3 earnings, revenue top estimates

NEW YORK - Ciena Corporation (NYSE:CIEN ) reported better-than-expected fiscal third quarter results on Wednesday, sending shares up 1.17% in premarket trading.

The networking systems company posted adjusted earnings of $0.35 per share for the quarter ended July 27, beating analyst estimates of $0.26 per share. Revenue came in at $942.3 million, topping the consensus forecast of $927.46 million.

However, revenue declined 11.8% YoY from $1.07 billion in the same quarter last year. Adjusted gross margin improved to 43.7% from 42.7% a year ago.

"We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers," said Gary Smith, President and CEO of Ciena.

The company reported adjusted operating margin of 8.0%, down from 12.0% in the prior year period. Adjusted EBITDA fell 34.9% YoY to $98.5 million.

Ciena repurchased approximately 0.6 million shares of common stock for $29.0 million during the quarter.

Looking ahead, management expressed optimism about the company's positioning, with Smith stating, "With leading innovation that is well-aligned with our customers' focus on building cloud and AI-capable infrastructures, we are well-positioned to continue to gain share and deliver profitable growth."

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Source: Investing.com