Ciena’s stock surges after profit and revenue rise above projections

Shares of Ciena Corp.
CIEN,
+15.80%
surged 2.0% toward a 2 1/2-month high in premarket trading Thursday, after the optical networking company reported fiscal third-quarter results that topped forecasts, citing increased customer activity and an elevated backlog. Net income for the quarter to July 29 rose to $29.7 million, or 20 cents a share, from $10.5 million, or 7 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 59 cents beat the FactSet consensus of 51 cents. Revenue grew 23% to $1.07 billion, above the FactSet consensus of $1.04 billion, as products revenue increased 26.4% and services revenue was up 10.3%. Cost of goods sold rose less than revenue, up 17.4%, as gross margin improved to 42.0% from 39.3%. The stock has dropped 15.3% year to date through Wednesday, while the S&P 500
CIEN,
+15.80%
has advanced 17.6%.