Ciena stock plunges on lackluster outlook
The Associated PressCiena 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.