Why Ciena (CIEN) Stock Is Declining Today

NEW YORK (TheStreet) -- Ciena (CIEN) shares are down -8.5% to $18.72 on Thursday after the communications networking equipment provider announced fourth quarter revenue guidance between $570 million and $610 million, well below analysts expectations of $628.9 million for the quarter.

Revenue for the third quarter was reported at $603.6 million, ahead of analysts $600.8 million estimates, leading to earnings of 32 cents per diluted share that was 4 cents better than analysts were expecting.

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TheStreet Ratings team rates CIENA CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CIENA CORP (CIEN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

CIEN Chart CIEN data by YCharts
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