Juniper's (NYSE: JNPR) weaker than expected Q2 2011 outlook did not sit well with investors this week, a message that put the biggest hit on its stock in over two years.
Shares declined 10 percent, or $3.64, to $32.97, the largest drop it has seen since the end of January 2009.
Kevin Johnson, Juniper's CEO, said during this week's Bank of America Merrill Lynch U.S. Technology Conference in New York that sales in the three months ending June 30 point to a "back-end loaded quarter."
He was quick to add that while they need to "be somewhat cautious, but yet maintain optimism about the long-term growth models that we've outlined and the demand for networking long-term."
Michael Genovese, an analyst at MKM Partners LP said in a Bloomberg article investors are possibly concerned that Juniper is in danger of missing its financial goals so it might need to have a really strong month in June.
However, Juniper's expectations should not come as that much of a surprise as the vendor intimated during its Q1 earnings call that it could have a challenging Q2 due to the issues with the recent Japanese earthquake and the launch of its Ethernet product line. The vendor forecast Q2 revenue of $1.13-$1.18 billion, while analysts expected earnings of 36 cents a share, on revenue of $1.16 billion.
For more:
- Bloomberg has this article
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