NEW YORK (AP) -- An analyst lowered his price target for Juniper Networks Inc. on Tuesday after the data network equipment maker lowered its expectations for fourth-quarter adjusted earnings and revenue.
Late Monday, Juniper Networks said that it expects to report quarterly adjusted earnings of 26 cents to 28 cents per share on revenue of $1.11 billion to $1.12 billion. The company previously forecast adjusted earnings in a range of 32 cents to 36 cents per share on revenue of $1.16 billion to $1.22 billion.
Analysts polled by FactSet expected fourth-quarter earnings of 33 cents per share on revenue of $1.18 billion.
Juniper Networks cited softer-than-expected router demand from service providers, mostly those in the U.S., for the revision. Its shares fell 38 cents, or 1.8 percent, to $21.15 in premarket trading Tuesday.
The company will report its financial results on Jan. 26 for the period ended Dec. 31.
"We've sensed that large carriers were slow, particularly AT&T while the T-Mobile deal was pending, but the extent makes us cautious," Simon Leopold of Morgan Keegan wrote in a client note.
But Jefferies & Co.'s George Notter said that some vendors are anticipating that AT&T will spend significantly more in the first quarter than it did in the first quarter. Notter also believes that Verizon, Sprint and T-Mobile will also likely boost their spending, which would bode well for Juniper Networks.
Notter maintained a "Buy" rating and $27.50 price target.
Leopold reaffirmed an "Outperform" rating, but lowered the company's price target to $25 from $27. He said he's cautious about near-term spending, but remains upbeat on the Sunnyvale, Calif., company due to growth prospects such as multiple new product initiatives.
A company representative could not be immediately reached for comment on the analysts' notes.
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