Ciena stock popped on Thursday after the company reported fiscal third-quarter earnings and revenue that handily beat consensus estimates while guidance came in above expectations amid big data center orders from Meta Platforms.
For the quarter ending July 31, Ciena earnings were 67 cents a share on an adjusted basis, up 91% from a year earlier. Revenue rose 29% to $1.22 billion.
Analysts expected the Hanover, Md.-based maker of optical communications gear to post earnings of 53 cents on sales of $1.175 billion.
For the October quarter, the company forecast sales of $1.28 billion at the midpoint of guidance, topping estimates of $1.21 billion.
Meta accounted for 18% of sales in fiscal Q3 and has likely new orders going forward for upcoming products, noted Raymond James analyst Simon Leopold in a report.
Ciena's fiber optics gear is built into telecom networks and hyperscale data centers operated by internet giants. Telecom customers have been ordering less network gear. But companies like Meta are building new data centers for artificial intelligence computing.
Ciena Stock Technical Ratings
On the stock market today, Ciena stock surged nearly 20% to 113.60 in afternoon trading. Shares had advanced about 12% this year prior to the Ciena earnings report.
Heading into the Ciena earnings report, the company owned a IBD Composite Rating of 91 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
