Shares of Ciena Corporation (CIEN) tumbled 6.77% in pre-market trading on Thursday following the release of its fiscal second-quarter 2025 financial results. The network technology company reported mixed results, with revenue beating expectations but earnings falling short of estimates.
Ciena reported quarterly revenue of $1,130 million, surpassing the IBES estimate of $1,092 million. However, the company's adjusted earnings per share (EPS) came in at $0.42, significantly below the expected $0.52. The adjusted net income for the quarter was $60.7 million, considerably lower than the IBES estimate of $76.1 million.
The disappointing earnings results appear to be the primary driver behind the stock's pre-market plunge. While Ciena's top-line performance was strong, the substantial earnings miss has likely raised concerns among investors about the company's profitability and cost management. The market's negative reaction suggests that investors are focusing more on the bottom-line performance rather than the revenue growth in the current economic environment.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.