Emily Dattilo
Ciena stock was trading higher after the optical networking equipment company issued upbeat guidance.
Shares gained 21% to $88.68 in early trading Thursday, on track for their largest daily percentage increase since 2019, according to Dow Jones Market Data.
For its fiscal fourth quarter ended Nov. 2, Ciena reported adjusted earnings of 54 cents, missing Wall Street's call for 65 cents, according to FactSet. Revenue of $1.12 billion topped the consensus estimate of $1.1 billion.
Gross margin of 40.9% slid from 43.1% in the year-ago quarter.
"Our Q4 revenue and strong order flow reflect our significant and increasing technology leadership and positive industry dynamics," said CEO Gary Smith in a statement. Artificial intelligence is a factor.
"As Cloud and AI drive bandwidth demand across the network, we are positioned for accelerated revenue growth and market share expansion moving forward," he added.
For its first fiscal quarter, the company expects revenue of $1.01 billion to $1.9 billion, according to the earnings transcript; analysts have penciled in $1 billion.
Ciena also forecasts average annual revenue growth of about 8% to 11% over the next three years.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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December 12, 2024 10:45 ET (15:45 GMT)
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