Juniper (NYSE: JNPR), not being able to fulfill a strong backlog of orders, reported lower than expected Q3 2010 revenue results.
Not surprisingly, news of the lower-than-expected revenue results drove the networking company's shares down 12 percent in late trading on Tuesday to $26.93. During the third quarter, Juniper reported $1.01 billion, falling slightly below analyst's expectations of $1.02 billion.
However, Juniper's Q3 net income rose 61 percent to $134.5 million, or 25 cents a share, from $85.8 million, or 16 cents a share, in 2009.
Given the fact that Juniper's Q3 lower sales figures were mainly due to a backlog, which will likely produce new sales in the fourth quarter and beyond, analysts remained positive about the company's future outlook.
Brent Bracelin, Pacific Crest Securities analyst, said in a Reuters article that investors should "aggressively buy Juniper on any weakness" because it will have strong product cycles next year.
For more:
- see the earnings release
Related articles:
Sizing up the wireline industry in the third quarter 2010
Juniper Q2: Revenue up, but Q3 forecast disappoints analysts
Juniper buys small stake in ADVA Optical Networking
Juniper, NSN team for IPoDWDM-like effort
Juniper gains lead in Q4, but challenges remain
Juniper: Telco spending will come back in 2010