Shares of Ciena Corp.
CIEN,
are off about 7% in premarket trading Thursday after the networking company reported a lower fiscal fourth-quarter profit than anticipated. The company reported net income of $65 million, or 42 cents a share, down from $80.3 million, or 51 cents a share, in the year-earlier quarter. On an adjusted basis, Ciena posted earnings per share of 60 cents, up from 58 cents a year prior. Ciena generated $828.5 million in fiscal fourth-quarter revenue, a decrease from $968 million in the year-earlier period. Analysts surveyed by FactSet were expecting 63 cents in adjusted EPS and $825.3 million in revenue. “While we expect current market conditions to persist in the near-term, we are confident in strong secular demand dynamics and our ability to continue to outperform the market.” Chief Executive Gary Smith said in a release. Ciena also announced that after it suspended share repurchases during fiscal 2020, the company will reinstitute its buyback program during the first quarter of 2021, with a target for about $150 million in repurchases during the fiscal year. Shares of Ciena are up roughly 11% so far this year as the S&P 500
SPX,
has gained 14%.