LINTHICUM, Md. (AP) - Ciena Corp.'s market value crumbled by nearly 25 percent Thursday after the telecommunications and network equipment maker forecast a lackluster finish to its fiscal year.
The Linthicum, Md.-based company's shares plunged $4.34, or 24.9 percent, to $13.09. The stock dropped to a 52-week low of $13 earlier in the session — a steep tumble from its 52-week high of $49.55 reached last October.
The sell-off occurred after Ciena predicted its fiscal fourth-quarter revenue would range from $190 million to $210 million, well below the average estimate of $263 million among analysts surveyed by Thomson Reuters.
Ciena also reported a dramatic decline in its third-quarter earnings, but the performance matched analysts' expectations.
In a Thursday note, RBC Capital Markets analyst Mark Sue predicted Ciena's struggles will extend into the next fiscal year, too, as the sluggish economy causes major customers like AT&T Inc., Verizon Communications and Sprint Nextel Corp. to delay some of their equipment orders.
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Comments
Ciena is very good value for money. the problem is not so much in the stock, but rather in the speculators.. hold your shares and watch the price return... the problem is that most of you suffer from mood swings and sell on a whim... you're causing the price to decrease, not the company..
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