Computer networking gear maker Juniper Networks Inc. (JNPR), Tuesday reported a higher first-quarter profit, on increased revenues and margins, as well as an income tax benefit. Juniper's quarterly earnings topped Wall Street estimates, while revenues fell shy.
The company detailed a soft outlook for the second quarter, citing expected weakness in the enterprise customer spending environment. Juniper shares fell six percent in after-hours trade on the New York Stock Exchange.
The Sunnyvale, California-based company reported quarterly net income of $91 million or $0.18 per share, compared to $16 million or $0.03 per share last year.
Results for the reporting quarter included a $0.05 tax benefit, among other items.
Excluding items, adjusted earnings for the quarter were $124 million or $0.24 per share, compared to $84 million or $0.16 per share in the prior year.
On average, 27 analysts polled by Thomson Reuters expected earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Operating margin for the quarter improved to 8.2 percent from 4.6 percent a year ago.
Juniper, which competes with Cisco Systems Inc. (CSCO) in the router industry, posted quarterly revenues of $1.06 billion, up 3 percent from $1.03 billion a year ago. Analysts on consensus estimated revenues of $1.07 billion.
"This was a quarter of modest year-on-year growth driven by renewed demand from service providers and offset slightly by softness in enterprise sectors," said CEO Kevin Johnson.
Revenues in the Americas increased from a year ago, while declines were seen in Europe, Middle East, and Africa, as well as Asia Pacific.
For the second quarter, the company expects adjusted earnings of $0.22 to $0.26 per share on revenues of $1.070 billion to $1.100 billion. Analysts currently expect earnings of $0.27 per share on revenues of $1.11 billion.
Juniper stock closed Tuesday at $17.36, up 1.40%, on a volume of 13.9 million shares. In after hours, the stock dropped 6.39%.
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