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Ciena's stock soars after big profit, revenue beats

Tomi Kilgore

Shares of Ciena Corp. soared 14% in premarket trade Thursday, after the optical networking company reported fiscal second-quarter profit and revenue that rose well above expectations. Net income for the quarter to April 30 rose to $52.7 million, or 33 cents a share, from $13.9 million, or 9 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS grew to 48 cents from 23 cents, above the FactSet consensus of 41 cents. Revenue grew 18.5% to $865.0 million, beating the FactSet consensus of $819.0 million, as 17.8% growth in networking platforms revenue to $697.0 million topped expectations of $653.7 million. Gross margin improved to 43.3% from 40.2%. The stock has gained 5.8% year to date through Wednesday, while the SPDR Technology Select Sector ETF has run up 19% and the S&P 500 has advanced 13%.