Juniper (NYSE: JNPR) may have seen its revenue spike 24 percent in revenue, a factor it attributes to an uptick in carrier spending, but a less than stellar Q3 forecast sent the vendor's stock down.
For Q3 2010, Juniper forecast earnings of 30 to 32 cents a share. This forecast was not exactly all that impressive given the fact that analysts polled by Thomson Reuters I/B/E/S expected Juniper to report 31 cents a share.
"The guidance was actually good, pretty solid. But some investors' expectations were clearly a little bit higher," said Michael Genovese, analyst at Soleil Securities.
One factor contributing to the weaker than expected outlook was a lack of new customer commitments from Tier 1 carriers such as AT&T and Verizon. The lack of new carrier customer wins drove down Juniper's shares 15 percent in the past three months.
Kevin Johnson, Juniper's CEO, however, says it has "very good relationships" with AT&T and Verizon, and that they are "very positive on the fact that these relationships are getting stronger."
Overall, Juniper had a solid second quarter. During the quarter, Juniper reported $978 million in revenue, an increase over the $786 million it saw in the same quarter last year and surpassing analysts' expectation of $954 million. At the same time, Juniper's earnings per share increased from 19 cents to 30 cents from Q2 2009, surpassing analysts' expectations by a penny.
- see the earnings release here
- Reuters has this article
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