Juniper Lowers Its 1Q16 Guidance Driven by Weaker Demand
What's in Store for Juniper Networks for the Rest of 2016?
Revenues expected to be $1.09 billion–$1.10 billion
On April 11, 2016, Juniper Networks (JNPR) announced weaker 1Q16 guidance driven by weak demand and the “unfavorable timing” of customer adoption of the company’s products. In 1Q16, Juniper expects to report revenues in the range of $1.09 billion–$1.10 billion and earnings per share (or EPS) of $0.35–$0.37.
In comparison, Juniper had earlier expected revenues in the range of $1.15 billion–$1.19 billion and EPS of in the range of $0.42–$0.46.
However, both of the company’s outlooks were below analysts’ consensus estimates. According to Thompson Reuters, analysts expect revenues of $1.19 billion and EPS of $0.47 for Juniper in 1Q16.
Lower demand in the enterprise segment
Juniper stated that its lower guidance was primarily driven by lower than anticipated demand in the company’s enterprise segment as well as the timing of deployments of US and EMEA (Europe, the Middle East, and Africa) Tier I telecommunications providers.
Shares of Juniper fell 6.3% to $23.3 in after-hours trading on April 11, 2016. Shares of peer companies such as Cisco (CSCO), Fortinet (FTNT), and Palo Alto Networks (PANW) fell 0.25%, 1.4%, and 5.1%, respectively, on the same day.
Juniper’s 52-week share price range is $21.49–$32.39. Juniper accounts for 4.3% of the iShares North American Tech-Multimedia Networking ETF (IGN).
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