Please ensure Javascript is enabled for purposes of website accessibility

Juniper Networks Guidance at Low End of Expectations

By Rich Duprey - Apr 24, 2013 at 6:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sees continued spending weakness amongst enterprise-level customers.

Wireless network equipment maker Juniper Networks (JNPR -0.76%) reported preliminary first-quarter earnings yesterday that came in below top-line consensus estimates by Capital IQ analysts, but issued guidance for the second quarter that was just able to meet expectations at its upper end.

Juniper reported revenues for the three months ending on March 31 will come in at $1.059 billion, up 3% from the same period last year but down 7% sequentially and below analysts expectations of $1.064 billion. The equipment maker recorded GAAP earnings of $0.18 per share, but adjusted profits of $0.24, which was 50% higher than the per-share adjusted profits it generated last year. Analysts had expected earnings of $0.13 per share.

Guidance for the second quarter 2013 ending June 30, however, was expected to be in a range of $1.07 billion to $1.1 billion, with the $1.085 billion mid-range number below the $1.108 billion expectations of analysts, though the upper end just meets them. On the bottom line, it anticipates non-GAAP earnings of $0.22 to $0.26 per share, with the mid-range of $0.24 ahead of Wall Street's $0.16-per-share estimates.

While acknowledging it expects to see continued weakness in enterprise customer spending, Juniper Networks CEO Kevin Johnson said:

We are seeing increased momentum with our new product offerings as we continue our strategy of innovating in the domain of high-performance networking. We believe Juniper has a strong position in the service provider market and has opportunity in the enterprise business as we continue to grow switching as well as revitalize our security business. We continue to focus on delivering great products, improving operational execution, and managing our costs carefully.

Juniper Networks delivers the software, silicon, and systems to enhance networking in devices and data centers at both the consumer and cloud provider level.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Juniper Networks, Inc. Stock Quote
Juniper Networks, Inc.
$31.17 (-0.76%) $0.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.