Juniper (NYSE: JNPR) Q3: Order backlog drives down sales

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

Suggested Articles

On the heels of TalkTalk shareholders approving the deal to sell FibreNation to CityFibre, CityFibre is now targeting 8 million premises in the U.K.

Cisco's Kevin Wollenweber has turned into a COVID-19 sleuth of sorts over the past few weeks as he tracks the virus' impact on networks.

The coronavirus pandemic has led to organizations of all sizes sending their employees home for work, but will they want to return to the office?