Ciena rises after Q3 sees growth in cloud providers, recovery in service

Ciena’s (NYSE:CIEN) stock rose about 2% premarket on Wednesday after fiscal third quarter results beat estimates.

For the three-month period ended July 27, Adjusted EPS tumbled about 40.6% year-over-year to $0.35, while revenue fell 11.8% year-on-year to $942.3M. However, both top and bottom line numbers of the networking company surpassed analysts’ expectations.

“We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers,” said Ciena’s President and CEO Gary Smith. “With leading innovation that is well-aligned with our customers’ focus on building cloud and AI-capable infrastructures, we are well-positioned to continue to gain share and deliver profitable growth.”

Revenue from Americas amounted to $718.6M, representing about 76.3% of total revenue in the third quarter of fiscal year 2024.

Asia Pacific region’s revenue was $88.7M, representing 9.4% of total revenue, compared to $165.6M, or 15.5% of total revenue in the third quarter of fiscal 2023.

The company bought back about 0.6 million common shares worth around $29M during the quarter.

Shares of other networking companies such as Ubiquiti (UI), F5 (FFIV), Lumentum (LITE), Calix (CALX), Juniper Networks (JNPR), Cisco (CSCO), were flat premarket on Wednesday.