Stocks are set for another push into record territory today. Already sitting at an all-time high, the Dow Jones Industrial Average (DJINDICES:^DJI) has gained 44 points in pre-market trading, suggesting a positive start for the stock market this morning. World shares were in the green overnight, led by a 0.8% gain in Europe's Stoxx index.
Networking equipment maker Ciena this morning booked higher than expected profit and sales for its fiscal second quarter. Earnings of $0.17 a share were ahead of the $0.13 that analysts had targeted, and revenue of $560 million also surprised to the upside. CEO Gary Smith said in a press release that those strong numbers were "a direct result of our expanding role and reach in the industry" as customers are increasingly opting for on-demand networking modules. Investors should be impressed with Ciena's growing profitability: adjusted operating margin climbed to 6.2%, which was significantly higher than last year's 3.7% haul. Ciena forecast even bigger gains ahead for the year, with sales of roughly $600 million next quarter, well above the $580 million that analysts projected. The stock was up 15.6% in pre-market trading.
J. M. Smucker today posted an 8% slide in revenue as falling coffee prices hit both its top and bottom lines. Sales clocked in at $1.2 billion in its fiscal fourth quarter after being swamped by a 12% dive in its Folgers coffee business, which had slightly higher volume but a much lower average selling price. Still, overall earnings fell at a slower pace, down 6% to $1.21 a share as cost reductions and share repurchases helped protect profit. Wall Street analysts were expecting sales of $1.24 billion and earnings of $1.16 a share. In a press release, CEO Richard Smucker touted the company's success in delivering increasing returns to shareholders for the full year, saying, "these accomplishments are a product of our long-term, forward-looking growth strategy, the strength of our iconic brands, an aggressive pipeline, and the commitment and perseverance of our team." J.M. Smucker expects a rebound in sales growth starting next quarter as a new coffee price increase kicks in. The stock was unchanged in pre-market trading.