Ciena (NYSE:CIEN) experienced a 12% gain intra-day today despite reporting fourth-quarter results that fell short of earnings expectations. For the fourth quarter, Ciena posted earnings per share of $0.54, down from $0.75 in the same period a year earlier and below the consensus estimate of $0.65. Revenue came in at $1.12 billion, a slight 0.5% year-over-year decline, matching analyst expectations.
The networking platforms segment generated $859 million in revenue, a 2% decline year-over-year but slightly surpassing the projected $842.8 million. Converged Packet Optical revenue showed resilience, increasing 4.2% to $779.6 million, beating the $728.5 million analyst forecast.
However, profitability took a hit as adjusted gross margins fell to 41.6%, down from 43.7% last year and below the 43.8% consensus estimate. This decline reflected the pressures impacting the company’s cost structure.
In a leadership update, Ciena announced the appointment of Lawton W. Fitt as the independent Chair of its Board of Directors, effective December 11, 2024. Patrick H. Nettles, the current Executive Chair, will retire following the company’s 2025 Annual Meeting of Stockholders but will remain on the Board to support Fitt’s transition.