Ciena Spikes On Improving Supply, And The Backlog Remains Robust

Dec. 09, 2022 10:44 AM ETCiena Corporation (CIEN)
Stephen Simpson profile picture
Stephen Simpson


  • Ciena handily beat sell-side expectations for its fiscal fourth quarter, as a meaningful improvement in component availability allowed the company to deliver on higher-margin orders in the backlog.
  • Per management guidance, improving component availability is putting the company back on its former revenue trajectory, but there are likely to still be some margin pressures in FY'23.
  • Ciena has a sizable backlog and delivering on this backlog will help offset what I expect will be softening end-market activity in FY'23.
  • Softer end-market activity is a sentiment risk for the near term, but Ciena shares do still look undervalued, with attractive opportunities in its core optical markets and new adjacent market opportunities.

Fiber optic cables around Earth, USA nightlights


Supply chain issues hamstrung Ciena (NYSE:CIEN) throughout its fiscal 2022 year, as the company couldn't get the chips and other components it needed to fulfill robust orders from telco, enterprise, and cable companies. The fiscal fourth quarter was a different story, though, as

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have a beneficial long position in the shares of CIEN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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