Ciena’s stock jumps after earnings beat expectations amid surprising revenue growth

Shares of Ciena Corp. CIEN,
Charged 5.8% in premarket trading Thursday after the optical network company reported fiscal third quarter earnings that beat expectations and surprising revenue growth, delivering an optimistic outlook citing a robust demand environment. Net income for the quarter ended July 31 increased to $238.2 million, or $1.52 per share, from $142.3 million or 91 cents per share in the same period a year ago. Excluding one-time items, such as a $124.2 million tax benefit related to a transfer of intangible assets, adjusted earnings per share declined from $1.06 to 92 cents, but were above the FactSet consensus of 80 cents. Revenue grew 1.2% to $988.1 million, from $976.7 million, while the FactSet consensus was down to $969.6 million. The gross margin improved from 47.6% to 48.0%. “These results, coupled with a robust demand environment, give us confidence that we will deliver our expected strong performance in the second half,” said Chief Executive Gary Smith. The stock is up 4.5% in the past three months through Wednesday, while the S&P 500 SPX,
has stalled at 7.5%.