Ciena (CIEN): Earnings Beat Loses Out To Market Downtrend
Revenue: Up 76% YOY to $253.5 million vs. estimates of $268 million.
“While we still have work to do in delivering the full value of the combined company, we believe we are strategically well-positioned, with strong customer relationships and a portfolio of leading solutions that are tightly aligned with the market trend toward high-capacity, scalable next-generation networks,” noted CEO Gary Smith.
Comment: After trading up nearly 5% at the open, CIEN (NASDAQ: CIEN) closed the day up .78% before giving back another .36% after-hours. There’s little question that this was a solid overall Q, but trading up significantly on a bad tape is generally too much too ask. Selling pressure was simply too strong.
This was a particularly sad sight for holders of shares, as CIEN seemed poised to take out it’s 20-day moving average and current downtrend line during AM trading. As long as negative sentiment persists, it’s unlikely shares will be able to mount much of a rally. However, if you have a long-term perspective, this may not be a bad time to begin accumulating shares.
Disclosure: No holdings in CIEN.