Why Ciena Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of optical networking equipment maker Ciena (Nasdaq: CIEN  ) are doing their best Superman impression, leaping over tall buildings and short-sellers grasps, after reporting better-than-expected second-quarter results. Shares were up as much as 13% today.

So what: For the quarter, Ciena reported a 14% rise in sales to $477.6 million with an adjusted profit of $0.04 which reversed a year-ago loss of $0.66. This compared favorably with Wall Street's expectation for a loss of $0.03 on just $447 million in revenue. As Ciena CEO Gary Smith has said before, he believes the company's growth in the second half should easily outpace its first-half performance, which could be a green light for investors to buy.

Now what: Following lackluster earnings reports from Cisco Systems (Nasdaq: CSCO  ) and JDS Uniphase (Nasdaq: JDSU  ) in the networking and fiber optics space, no one had been expecting Ciena to report strong earnings given the worries in Europe and the tight spending by U.S. telecommunication companies. But Ciena proved those naysayers wrong. I remain very optimistic regarding prospects in the fiber optic sector and Ciena is just one of the many companies that looks poised to benefit.

Craving more input? Start by add Ciena to your free and personalized watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 31, 2012, at 10:03 PM, kamee73 wrote:

    The fact of the matter is that you have been more wrong than right and your track record is horrible when it comes to Talbots and other company. I just do not folks to listen to your non smart ideas.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1899899, ~/Articles/ArticleHandler.aspx, 10/24/2016 9:06:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 0.00%
S&P 500 2,141.16 -0.18 0.00%
NASD 5,257.40 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
CIEN $19.93 Down +0.00 +0.00%
Ciena CAPS Rating: **
CSCO $30.15 Down +0.00 +0.00%
Cisco Systems CAPS Rating: ****
VIAV $7.19 Down +0.00 +0.00%
Viavi Solutions CAPS Rating: ***