Ciena Corp. (NYSE:CIEN)
Earnings & Technicals
On Thursday before the market opened, Ciena announced second-quarter earnings that topped analyst expectations and sent shares soaring in the premarket sesion. The company announced adjusted second quarter earnings of 34 cents on $640.7 million while analysts were looking for earnings of 27 cents per share on $630.8 million in revenues. This is also compared the same period ending last year where they posted revenues of $621.6 million. Analysts currently have an average price target of $23.43.
Looking at the chart you will see that shares have spiked up to premarket highs of $20.25 after closing Wednesday at $17.76, a 14% jump in price. Shares are looking to open around $19.50 so we should see our first level of support come in at $19 followed by $18.50 with resistance coming in at $19.50 followed by the 200-day moving average currently sitting at $20.17. Shares should see a bit more attention today with this big move in the premarket so expect increased volatility and range today as more traders will be looking to take advantage of this big move.
CEO Comments
This quarter’s strong financial performance is a result of the investments we’ve made to diversify our business, in particular the expansion of our packet business and our momentum in key geographies,” said Gary B. Smith, president and CEO, Ciena. “As the industry shifts toward an on-demand networking model across an open ecosystem, we are confident in our ability to address those demands with a broader set of customers, applications and geographies to deliver sustainable long-term growth and increased profitability.
CIEN Profile
Ciena Corporation provides equipment, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company’s Converged Packet Optical segment offers networking solutions optimized for the convergence of coherent optical transport, OTN switching, and packet switching. Its products comprise the 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System. This segment also sells operating system software and enhanced software features embedded in each of these products. Its Packet Networking segment provides the 3000 family of service delivery switches and service aggregation switches, the 5000 family of service aggregation switches, 8700 Packetwave Platform, and the Ethernet packet configuration for the 5410 Service Aggregation Switch. The company’s Optical Transport segment transports voice, video, and data traffic at high transmission speeds.
Its principal products include the 4200 Advanced Services Platform, Corestream Agility Optical Transport System, 5100/5200 Advanced Services Platform, Common Photonic Layer, and 6100 Multiservice Optical Platform. Its Software and Services segment offers network management solutions, including the OneControl Unified Management System, ON-Center Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release, and Planet Operate; Blue Planet software platform; and SDN Multilayer WAN Controller and its related applications. This segment also provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.
By Sean V