Nomura analyst, Jeffrey Kvaal, noted that Ciena (NYSE: CIEN) reversed a string of disappointing quarters with a solid beat-and-meet quarter driven by a robust recovery in international demand. While consensus EPS estimates should rise modestly, the shares may celebrate given bearish sentiment.

F2Q sales at the high end of guidance on international. North American demand remained solid if unspectacular, essentially flat both QoQ and YoY. AT&T remains the lead customer at 18% of sales. International, however, delivered impressive 36% QoQ growth after several uninspired quarters. The strength may not be durable; it may, for example, include FX gains. In total, sales of $641mn beat consensus of $631mn.

Full note to come after the call. No change to Buy rating or $24 PT.

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Shares of CIENA closed at $17.76 yesterday.