Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Juniper Networks, Inc.    JNPR

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Juniper 1Q Net Drops 87% On Weaker Sales; 2Q View Weak

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/25/2012 | 01:11am CEST

--Sales hurt by a decline in enterprise routing, though new products are contributing to results

--Morningstar analyst says it will take time before new products unveiled last year will meaningfully add to sales

--CEO says Juniper is focused on execution as service providers are cautious about capital expenditures

(Updates throughout with executive comments, analyst remarks and latest stock quote, beginning in the second paragraph.)

 
   By Drew FitzGerald and John Kell 
   Of  
 

Juniper Networks Inc.'s (>> Juniper Networks, Inc.) first-quarter earnings slumped 87% as weaker sales of routers and other hardware dragged down the company's bottom line.

Chief Executive Kevin Johnson told analysts during the company's conference call that results were hurt by a decline in enterprise routing, though Juniper's new products are beginning to contribute to results.

Looking ahead to the second quarter, Juniper projected a downbeat adjusted profit between 15 cents and 17 cents a share, with $1.03 billion to $1.06 billion of revenue. Analysts polled by Thomson Reuters expected a 20-cent per-share profit and $1.05 billion of revenue.

Shares were up 2.5% at $22.16 in after-hours trading as the latest results topped Juniper's muted January expectations.

Juniper's earnings have declined for more than a year amid soft demand from several key customer groups. Like many of its peers, the maker of routers and switches has faced headwinds as some telecommunications companies--which typically account for more than half of its revenue--reduce their capital expenditures in response to economic uncertainty.

Morningstar analyst Grady Burkett said after weak second-half spending from telecom giants Verizon Communications Inc. (VZ) and AT&T Inc. (T), the data the market is seeing suggest a "flattish" capital spending environment this year.

Juniper also faces stiff competition, including from larger rival Cisco Systems Inc. (CSCO) and discounter Huawei Technologies Co. (002502.SZ).

The company has launched a series of new products it hopes will drive growth and enable it to grow faster than the markets it serves. Chief Financial Officer Robyn Denholm on Tuesday struck a bullish tone, saying Juniper was pleased with early demand for new products, though customers are cautious in their near-term investment and project spending.

Burkett said it would take time before the new products Juniper released in the back half of last year could be attributed to a meaningful rise in sales. Burkett said there is typically a nine- to 12-month evaluation period, and customers may make small initial purchases before fully investing in expensive products.

Johnson told analysts that while service providers were being "very cautious in their capital expenditures," Juniper's focus is on execution.

"Now, we've got these new products in market and we're engaging with customers, you know, for the architectural design win and the trials to get these products deployed and drive demand, that's going to be our primary focus," Johnson said.

In the latest quarter, Juniper posted a profit of $16.3 million, or 3 cents a share, down from $129.8 million, or 24 cents a share, a year earlier. Excluding stock-based compensation, write-downs and other adjustments, per-share earnings fell to 16 cents from 32 cents as revenue decreased 6.3% to $1.03 billion.

The company's downbeat guidance in January called for first-quarter profit between 11 cents and 14 cents a share on $960 million to $990 million of revenue.

Gross margin narrowed to 61.4% from 66.8%.

Revenue from Juniper's platform systems division fell 8.3% amid weaker sales of routing and security products. Revenue rose 2.6% in the smaller software solutions division.

Revenue in the Americas dropped 8.9%, mainly due to lower demand from regional and content service providers. Asia Pacific notched a 12% drop, as the prior-year results included a large service provider deployment in Japan. Juniper is aiming to diversify the company's customer base in Japan while also targeting emerging-market opportunities in China and India. Revenue in Europe, the Middle East and Africa grew 2.5%.

-By John Kell and Drew FitzGerald, Dow Jones Newswires; 212-416-2480; [email protected]

Stocks mentioned in the article : Juniper Networks, Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JUNIPER NETWORKS, INC.
04/26 JUNIPER : CloudSeeds Selects Juniper Networks' Solutions for Self-Serve, Agile B..
04/25 JUNIPER : tops Street 1Q forecasts
04/25 JUNIPER NETWORKS, INC. (NYSE : JNPR) Files An 8-K Results of Operations and Fina..
04/25 JUNIPER NETWORKS INC : Results of Operations and Financial Condition, Financial ..
04/25 JUNIPER : Reports Preliminary First Quarter 2017 Financial Results
04/25 JUNIPER : Ingram Micro Wins 2016 Juniper Networks Distribution Partner of the Ye..
04/24 JUNIPER NETWORKS, INC. : Investor Network Invites You to the Juniper Networks Fi..
04/24 JUNIPER : NEP The Netherlands Transforms its IP-Based Production Platform with I..
04/18 JUNIPER : Shares Bought by Lazard Asset Management Llc
04/12 JUNIPER : IIE, Juniper Networks Select Scholarship Winners
More news
Sector news : Network Equipment
04/25DJTELEFONAKTIEBOLAGET LM ERICSSON : Ericsson Pushed to Hefty Loss by Write-Downs, ..
04/21DJFinancial, Industrial Sectors Boost Stocks -- WSJ
04/20DJBlackBerry Row Hits Qualcomm's Results -- WSJ
04/20 Qualcomm results beat help allay worries over Apple dispute
04/19DJQUALCOMM : BlackBerry Arbitration Ruling Cuts Into Qualcomm's Profit -- 2nd Upda..
More sector news : Network Equipment
News from SeekingAlpha
04/25 Juniper Networks +3.3% as cloud solutions provide earnings boost
04/25 Juniper Networks beats by $0.04, beats on revenue
04/24 Notable earnings after Tuesday?s close
04/24 CISCO SYSTEMS : An Undervalued Cash Flow Machine
03/13 STARBUCKS : Ready For Growth
Advertisement
Financials ($)
Sales 2017 5 217 M
EBIT 2017 1 216 M
Net income 2017 604 M
Finance 2017 1 671 M
Yield 2017 1,53%
P/E ratio 2017 16,52
P/E ratio 2018 15,84
EV / Sales 2017 1,72x
EV / Sales 2018 1,65x
Capitalization 10 625 M
More Financials
Chart JUNIPER NETWORKS, INC.
Duration : Period :
Juniper Networks, Inc. Technical Analysis Chart | JNPR | US48203R1041 | 4-Traders
Full-screen chart
Technical analysis trends JUNIPER NETWORKS,...
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 30
Average target price 29,1 $
Spread / Average Target 4,6%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Rami Rahim Chief Executive Officer & Director
Scott G. Kriens Chairman
Ken Miller Chief Financial Officer & Executive Vice President
Pradeep S. Sindhu Vice Chairman, CTO & Chief Scientist
Robert Worrall Chief Information Officer & Senior Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JUNIPER NETWORKS, INC.-1.70%10 625
ACCTON TECHNOLOGY CORP..--.--%1 213
EXTREME NETWORKS, INC55.27%829
KAPSCH TRAFFICCOM AG21.43%634
QUANTENNA COMMUNICATIO..-3.25%630
SERCOMM CORPORATION--.--%624
More Results