Ciena Corp (NYSE:CIEN) declined in pre-market trading even after announcing better-than-expected Fiscal Q1 results. The networking systems and software company reported adjusted earnings of $0.66 per share in Fiscal Q1 compared to $0.64 per share in the same period last year. This was above consensus estimates of $0.48 per share.
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The company generated Q1 revenues of $1.04 billion, a decline of 1.7% year-over-year, but surpassed Street estimates of $1.02 billion.
Ciena’s management pointed out that while the company reported solid Q1 results and remained confident about the demand for bandwidth, service providers were taking longer than anticipated to process the high inventory levels.
Is Ciena a Good Stock to Buy?
Analysts remain bullish about CIEN stock with a Strong Buy consensus rating based on seven Buys and one Hold. CIEN stock has gone up by more than 20% over the past year, and the average CIEN price target of $60.13 implies a downside potential of approximately 3% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
