Ciena (CIEN) stock pops as FQ3 earnings top estimates

Ciena Corporation (NYSE: CIEN) has released its Q3 earnings report, sending its shares more than 3% higher in pre-market Thursday trade.

The company’s EPS of $0.59 cleared the average analyst estimate of $0.51. Revenue for the quarter amounted to $1.07 billion, which outperformed the consensus estimate of $1.04 billion.

Ciena's networking platforms revenue for the quarter reached $846.6 million, marking a notable increase of 27% year-over-year. This performance surpassed the estimate of $887 million.

"We delivered excellent results for the fiscal third quarter with strength across all regions," said Gary Smith, president and CEO of Ciena. "We are encouraged by increased customer activity that, when combined with our elevated backlog, market leadership and expanding addressable market, we believe will drive growth and market share gains going forward."

The company's Converged Packet Optical revenue also showed growth, amounting to $719.0 million, up by 28% YoY and ahead of the $756.9 million.

Additionally, Ciena reported an adjusted gross margin of 42.7%, indicating an improvement compared to the 40% margin recorded in the same period of the previous year. This adjusted gross margin result was slightly higher than the estimated margin of 42.5%.

By Senad Karaahmetovic

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