Juniper's (NYSE: JNPR) stock took a hit after its Q2 2011 results failed to meet analyst expectations, a result of large telco customers delaying new equipment purchases.
Yesterday, Juniper's shares were down 16 percent in German trading and closed at $37.17 in trading on the New York Stock Exchange (NYSE).
Click here for selected slides from Juniper's Q2 results.
These results, however, should not be all that surprising as Juniper forecast lower Q2 sales in its Q1 2011 earnings call in April.
While the vendor's revenue rose 15 percent on a year-over-year basis, and increased 2 percent sequentially, to $1.12 billion, the results missed analysts' expectations of profit of 33 cents a share and sales of $1.15 billion.
"We delivered solid year-over-year growth in the June quarter," said Robyn Denholm, chief financial officer at Juniper Networks. "However, we saw some moderation in certain areas of the business, which resulted in revenues coming in below our expectations."
Denholm added that she was "pleased with our diligent expense control, which enabled us to generate earnings within our guidance range."
Looking forward to Q3, Juniper has forecast Q3 2011 revenue to come in between $1.07 billion to $1.12 billion. This outlook falls below analyst expectations of $1.22 billion in sales and 38 cents in profit.
Kevin Johnson, CEO of Juniper, said he is taking a cautious outlook about the rest of 2011 due to softer Japan sales and an overall slowdown in service provider spending.
"We are cautious about the second half yet very optimistic about our position going into 2012," said Johnson in the earnings call. "We look to grow faster than the market in 2011 while strengthening the innovation portfolio as we set up for 2012."
- see the release
- Bloomberg has this article
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