Juniper profit up but shy of higher
expectations
Juniper
Networks Inc (JNPR.O: Quote, Profile, Research), the world's
second-largest maker of routers for the Internet, on Tuesday reported a 46
percent jump in quarterly profit, but the shares fell in extended trading after
results missed some investors' raised expectations.
Juniper shares fell
4.4 percent in extended trading following the earnings report after adding 3.5
percent to close at $37.14 on Nasdaq.
Juniper reported earnings before
certain items of 22 cents per share, one cent above analysts' average forecast
of 21 cents per share but shy of results expected by some investors. The stock
is up about 90 percent this year.
"They beat by just a penny, but they
should have beat by two pennies or three pennies," said Ehud Gelblum, an analyst
at JPMorgan who has an "overweight" rating on the shares. "But what will carry
the day is the higher revenue and the higher gross margin."
Third-quarter revenue rose to $735 million from $573.6 million, beating
the average analyst estimate of $707.8 million, as compiled by Reuters
Estimates. Net income rose to $85.1 million, or 15 cents per share, from $58.3
million, or 10 cents per share, a year earlier.
Juniper in July said it
expected third-quarter revenue of $695 million to $715 million and earnings per
share of 21 cents before items.
Juniper, which makes telecommunications
equipment and digital networks for businesses, has benefited from growth in
online video and other Internet uses that require high-speed Web service. It
competes with Cisco Systems Inc (CSCO.O: Quote, Profile, Research), the largest
maker of such equipment.
Shares of Juniper trade at 43 times estimated
2007 earnings per share, compared with Cisco's multiple of about 24. (Reporting
by Philipp Gollner, editing by Phil Berlowitz)
2001-2007 Comsenz Inc.
