Ciena Stock Gets a Jolt After Earnings Beat

The company did see a slight drop in revenue from its last quarter

Digital Content Manager
Jun 3, 2021 at 9:40 AM
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The shares of Ciena Corporation (NYSE:CIEN) are getting a big boost this morning, last seen up 5.1% at $57.20, following the firm's fiscal second-quarter earnings report. The company reported 62 cents per share in earnings, easily topping analysts' estimates, while the $833.93 million in revenue just barely topped expectations. The networking systems company did see a 6.7% dip in its revenue, however. 

The equity has been rising on the charts for the better part of May, and recently found its footing at the 30-day moving average -- a previous area of  pressure. What's more, the stock topped yet another short-term ceiling at its $54 level, logging its highest close in over a month during yesterday's session.  CIEN is up 3% year-to-date, though it boasts a six-month return of 19.1%. 

Analysts were mostly optimistic ahead of Ciena's earnings event. Of the 14 in coverage 10 said "buy" or better, and four said "hold." Meanwhile, the 12-month consensus price target of $60.31 is a 5.3% premium to current levels. 

Option traders have been a bit more bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CIEN sports a 10-day put/call volume ratio of 0.83, which sits in the 84th percentile of its annual range. This implies puts are being picked up at a much quicker rate than usual. 

 

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