Ciena’s stock drops as profit miss offsets sales beat, new share buyback program

Stocks of Ciena Corp. CIEN, -1.26% dropped three.6% in premarket industry Thursday, after the networking era corporate reported a fiscal fourth-quarter benefit that neglected expectation, even supposing gross sales beat. Internet source of revenue for the quarter to Oct. 31 rose to $1.16 billion, or $7.32 a proportion, from $36.6 million, or 25 cents a proportion, in the similar duration a 12 months in the past. Apart from non-recurring pieces, reminiscent of a $1.13 billion tax get advantages, adjusted income according to proportion got here to 46 cents, beneath the FactSet consensus of 50 cents. Earnings rose to $744.four million from $716.2 million, above the FactSet consensus of $736.nine million, as networking platforms earnings of $598.nine million beat expectancies of $592.five million. One after the other, the corporate introduced a brand new $300 million inventory repurchase program, which can be in position via fiscal 2020. The inventory has misplaced 13.three% 12 months up to now via Wednesday, whilst the SPDR Era Make a choice Sector ETF XLK, +Zero.64% has run up 30.1% and the S&P 500 SPX, -Zero.01% has received 17.four%.

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