On September 3, Ciena fell 6.43% in regular trading, trading at $324.28/share, with turnover of $485 million. Despite delivering a blowout Q3 report, the stock reversed sharply from pre-market gains of over 5%, succumbing to heavy profit-taking pressure.

Ciena reported fiscal Q3 adjusted EPS of $2.11, crushing the consensus estimate of $1.73 by nearly 22% and surging 215% year-over-year from $0.67. Revenue reached $1.67 billion versus the $1.64 billion expected, with optical networking revenue jumping 46% year-over-year driven by AI-related data center demand. The company raised its full-year revenue guidance to $6.42 billion, above the Street estimate of $6.34 billion, and guided Q4 revenue to $1.75 billion versus expectations of $1.70 billion.

However, the stock had already declined over 35% since last quarter amid supply chain constraint concerns. Multiple institutions recently cut price targets, including BofA lowering to $550 from $660 and B. Riley slashing to $413 from $516. The broader optical communications sector also traded lower, with peers such as Lumentum down 2.82% and Applied Optoelectronics down 2.78%, compounding selling pressure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)