Ciena surges nearly 20.0% on upbeat quarterly results

Ciena (CIEN.US) stock jumped almost 20.0% on Thursday after networking equipment maker posted superb quarterly figures as supply chain problems eased. 

• Company earned an adjusted 61 cents per share, well above analysts’ estimates of 8 cents. 

• Revenue dropped 7% to $971 million, topping market expectations of $850 million.

• Despite better-than-expected results, one can notice a clear deterioration compared to last year, when the company earned 85 cents a share on revenue of $1.04 billion. 

•  "Our strong fiscal fourth quarter financial results were better than expected as we benefited from some favorable supply chain developments in the second half of the quarter," said Ciena CEO Gary Smith, in a statement. "Looking ahead, we expect to deliver outsized revenue growth in fiscal 2023 given our significant backlog and continued signs of gradual supply improvement."

Ciena (CIEN.US) stock launched today's session with a massive bullish price gap and for the first time since beginning of April 2020 is trading above 200 SMA (red line), which acts as the first line of support. If current sentiment prevails, buyers may attempt to break above local resistance at $54.40, which is marked with previous price reactions and 61.8% Fibonacci retracement of the upward wave launched in October 2020. Source: xStation5