Ciena Corporation (CIEN) has disclosed a new risk, in the Corporate Activity and Growth category.
Ciena Corporation faces a substantial business risk as it confronts declining order volumes and a diminishing backlog, which has fallen from a peak of $4.2 billion to $1.9 billion. With revenue previously buoyed by backlog consumption during fiscal 2023, the company now grapples with a shift towards the necessity of securing immediate “book to revenue” orders to sustain growth. The reduction in customer orders, particularly from communications service providers, casts uncertainty on Ciena’s ability to maintain revenue levels. Should Ciena fail to generate the necessary order growth, its financial performance and operational results could be significantly impacted.
Overall, Wall Street has a Moderate Buy consensus rating on CIEN stock based on 8 Buys, 1 Sell and 2 Holds.
To learn more about Ciena Corporation’s risk factors, click here.
