Here's Why Ciena Corporation Stock Fell 16.1% in August
Shares of fiber-optic communications-equipment builder Ciena (NYSE: CIEN) fell 16.1% in August 2017, according to data from S&P Global Market Intelligence. Already fighting a 7% headwind based on general weakness in the fiber-optic networking industry, Ciena knocked out a strong earnings report at the very end of August. But thanks to timid next-quarter guidance, share prices took an immediate 9% dive the next day anyhow.
Ciena's third-quarter sales rose 8.7% year over year, landing at $729 million. Adjusted earnings increased from $0.42 to $0.51 per diluted share. Both figures came in slightly above Wall Street's projections, which only called for earnings of $0.49 per share on sales near $727 million.
Looking ahead, Ciena's management set up fourth-quarter revenue guidance at approximately $735 million, far short of analysts' $770 million average projections at the time. The company also expects operating costs to rise, yielding adjusted earnings of approximately $0.42 per share in the fourth quarter. Analysts had been looking for something closer to $0.50 per share.
Source: Fool.com
Ciena Corp. Stock
With 20 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
With a target price of 55 € there is a slightly positive potential of 5.49% for Ciena Corp. compared to the current price of 52.14 €.
