Ciena sinks on forecast cut

Ciena

07/03/2024 18:55

(Updates prices, adds financial guidance)
    ** Ciena Corp's  CIEN.N  shares down 13.3% at $53.69, on
track for biggest pct decline since Sept 2020, after
communications and networking firm cut its full-year forecast 
    ** CIEN said now expects revenue for fiscal year 2024 in $4
billion to $4.3 billion range, down from previous expectation
for 1% to 4% growth. Latest forecast would represent decline
from FY 2023 revenue of $4.39 bln as per statement issued in Dec
  
    ** "While we remain very confident in the strength and
durability of bandwidth demand as a long-term driver of our
business, it is taking longer than expected for service
providers to work through high levels of inventory" - CEO Gary
Smith said in latest quarterly statement
    ** CIEN reported fiscal Q1 adj EPS of 66 cents vs consensus
expectation of 48 cents, as per LSEG 
    ** Among 15 analysts covering the stock, five rate it
"strong buy", six "buy" and four "hold" and their median PT is
$60 - LSEG
    ** YTD, CIEN shares now up about 20% after falling 11.7% in
2023

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))