Shares of optical networking equipment company Ciena Communications (CIEN -2.01%) were up earlier in the day Wednesday after a quarterly report that pleased investors. Shares were up 7% at one point, but by 3:30 p.m. Ciena stock was about even with where it closed the day before.
Convincing third-quarter beats
Well before market open, Ciena unveiled its fiscal third quarter of 2024 fundamentals, giving market players plenty of time to digest them. For the period, the specialty tech company booked revenue of just over $942 million, which was down from the $1.07 billion of the same period the prior year. Non-GAAP (adjusted) net income saw a steeper fall, declining to $50.8 million ($0.35 per share) from the year-ago $89.1 million.
In spite of the declines, Ciena handily beat analyst estimates on both the top and bottom lines. On average, prognosticators tracking the stock were modeling just over $927 million for revenue, and only $0.26 per share for adjusted net income.
In the company's earnings release, it quoted CEO Gary Smith as attributing the better-than-expected performance to "growing momentum with cloud providers and continued gradual recovery with service providers."
While the twin beats were impressive, there's still cause for concern with Ciena. Those headline numbers continue to trend down, and Ciena will continue to operate in a market that -- despite Smith's rosy pronouncements -- isn't particularly lively.
CFO stepping down, though not immediately
Separately, Ciena announced a major change in the C-suite. It said CFO James Moylan plans to retire and step down on Aug. 28, 2025. The company said it will begin a formal search for a successor, although it provided no timing for this. Moylan will continue to serve in the position until a successor is in place, Ciena added. Investors will have to wait to see who takes over in the corner office.
