By Senad Karaahmetovic
Shares of Ciena (NYSE:CIEN) are down over 9% in premarket Thursday after the telecom and networking company reported results that missed the average analyst estimate.
Ciena reported an adjusted EPS of $0.33, a minor miss compared to the analyst estimate of $0.34. Revenue for the quarter came in at $868 million versus the consensus estimate of $904.67 million. The adjusted gross margin was reported at 40%, again lower than the 41.9% consensus.
"Despite continued strong customer demand, our fiscal third quarter financial results were negatively impacted by late delivery and substantially lower-than-committed volume from a small number of suppliers for specific components that are essential for delivering finished goods to our customers," said Gary Smith, president, and CEO of Ciena.
Vital Knowledge analysts blamed the FQ3 miss on supply chain challenges. However, analysts said the market “will probably forgive them for the miss given that end market demand remains robust.”
An MKM Partners analyst took note of “disappointing” results, which were mainly driven by “persistent supply chain challenges including late deliveries from suppliers which are expected to continue into Q4, with improvement expected in FY23.”