Ciena Corp (CIEN) is trading up over 7% pre-market at $26.75 on more than 700,000 shares. The company has beat earnings expectations and guidance in the coming quarter looks in-line to above projections. The company posted EPS at $0.14 vs $0.12 estimates and guidance was put at $0.19-0.24 EPS versus estimates of about $0.19. Irs revenues were just above plan at $160M versus $159.99M estimates, and it put revenue growth in the low-single digits.
CIEN has finally been winning more and more telecom business in the fiber to the home initiatives. The company will be an active issue today, but it likely won’t see the old crazy endless trading since it did a reverse stock split. As of last month CIEN had 5.2 million shares in the short interest, compared to a new 2.5 million share average daily volume and its 52-week trading range is implied at $18.69 to $39.34, but remember that it is an implied range because of the reverse stock split.
Some of the share increase may be short covering and some is likely a pure relief rally as they finally went profitable. There were some whisper numbers out for revenues that the street wanted to see better, so we’ll have to see if the street focuses more on the bottom line or if they focus on the overall improvements and market mechanics today.
Jon C. Ogg
December 14, 2006
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