Why Ciena's Stock Jumped 17% Today
Shares of Ciena (NYSE: CIEN) traded 17.4% higher as of 1:20 p.m. EST, thanks to a mixed fourth-quarter earnings report. The maker of high-speed networking systems and related services also presented a rosy view of its long-term growth prospects.
In the fourth quarter of fiscal-year 2019, Ciena saw revenues rise 7.6% year over year to $968 million. Adjusted earnings increased by 9.4%, landing at $0.58 per diluted share. Your average analyst had been expecting earnings near $0.63 per share on sales in the neighborhood of $964 million, so Ciena beat the consensus revenue target while falling short of bottom-line estimates.
On the earnings call, CFO Jim Moylan said that Ciena continues to target year-over-year earnings growth of roughly 20% per year over the next three years. Revenues are expected to rise at an annual clip of approximately 7% over the same period.
Source Fool.com
