To the surprise of many, Ciena actually posted a slight profit this morning when many analysts expected negative earnings per share. That's not what has this stock flying high today though, but rather the guidance that the company provided.
Ciena announced third quarter revenue estimates in the range of $515 million to $545 million, while analysts expected revenues of only around $509 million.
While the range is wide, somewhere in the middle would be a large increase over what analysts and investors expected going into the report.Cramer noted that most people had written off the telecoms and didn't think they were spending much money. But it turns out that was not the case, which was highlighted from Juniper Networks (JNPR) and Cisco (CSCO) when they reported earnings. "Some of these telcos were left for dead; well, they are showing signs of life," Borchardt concluded. Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long CSCO. -- Written by Bret Kenwell in Petoskey, Mich. Follow @traderboy23
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV