Ciena on Monday reported January-quarter profit and revenue that topped analyst estimates as supply chain problems eased. The Ciena earnings beat and raised fiscal 2023 guidance sent CIEN stock up.
The Hanover, Md.-based maker of optical communications gear and software posted earnings before the market open Monday. Ciena stock flirted with a buy point of 53.26 on the news.
Ciena earnings for its fiscal first quarter were 64 cents a share, up 36% from a year earlier. Revenue rose 25% to $1.056 billion for the quarter ending Jan. 28. Analysts expected earnings of 36 cents a share on sales of $959 million.
For full-year 2023, Ciena forecast revenue growth in a range of 20% to 22%, up from its earlier outlook for 17% growth.
Ciena stock advanced 3.7% to close at 50.89 on the stock market today. Earlier in the session, it climbed as high as 54.25.
CIEN Stock: Huawei Impact?
For much of 2022, component shortages slowed Ciena's production of network gear. As a result, Ciena built up a record order backlog.
"In a normal environment, declining backlog justifiably raises concerns, but Ciena is not in a normal environment," Raymond James analyst Simon Leopold said in a report.
He added: "Management contends that the demand backdrop is healthy, with no change in cancelations but some deferrals and the company expects outsized revenue growth and market share gains in fiscal 2023."
Heading into the Ciena earnings report, CIEN stock had retreated 3% in 2023.
Ciena's gear is built into telecom networks and internet data centers. In addition, the company competes against Infinera and Cisco Systems.
Ciena stock may gain from U.S. government political pressure on China's Huawei, analysts say. Some countries have halted purchases of Huawei network gear on national security concerns.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
