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Juniper Networks Shares Down After Lowered Guidance

juniper-networksJuniper Networks (NYSE: JNPR) shares were trading lower, down by 6.06% to $19.6y , the steepest decline since July 23, but slightly above the 52-week range of $18.36 to $28.75 after the company announced third quarter adjusted earnings of $0.34 and $0.36 and missing its own forecast of $0.35 to $0.40.

Lower-than-anticipated demand from service providers is mostly blamed on guidance, in part due to the ongoing focus of cost reduction initiatives, as well as the quarter’s benefit of reduced variable compensation.

The reduced share value comes after Juniper experienced low after-hours trading yesterday, falling 3.1% to $20.29. Juniper expects third quarter revenues between $1.11 and $1.12 billion, up from expectations but lower than prior guidance of $1.15 to $1.20 billion.

Juniper is scheduled to release the full earnings report by October 23. Year-to-date, shares have underperformed with a decline of 7%. According to analysts, if the downward momentum continues in today’s trading, support will fall near the area of $19.00 to $19.15.

Juniper stock is being affected because of delay equipment purchases for the remainder of 2014 by some telecommunications carriers. In a market dominated by rival Cisco Systems, Inc. (NASDAQ: CSCO), Juniper Networks has struggled in selling smaller gear to corporations.

Juniper Networks, Inc., designs, develops, and sells both product and services for high-performance networks around the globe.

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