Shares of the optical-networking hardware company Ciena fell 10% after reporting weaker-than-expected earnings.
The earnings miss is the second straight for the company and well below its already lowered guidance. Revenues were $868 million vs. the $870-$930 million range expected by management and below Wall Street’s $904 million estimate. In addition, its adjusted earnings per share of $0.33 missed estimates by a penny. 🔻
Much like industrial company Deere, supply chain issues seem to impact Ciena’s ability to meet demand. Late delivery and lower-than-committed volumes from several suppliers left them without essential components for their finished goods.
Management expects these issues to persist in the current quarter but improve in the next as it begins fiscal 2023. While they did not guide for the coming fiscal year, their current backlog is $4.4 billion, more than Wall Street’s consensus revenue forecasts for the year. 😮
The stock sold off heavily on the news and is approaching its year-to-date lows in the low 40s. 📉
