Juniper Networks 4Q Net Climbs 7.8%; Shares Down
But shares fell 4.0% to $16.30 in after-hours trading as revenue came in at the low end of the company's forecast.
Many anticipate turbulence for communication-equipment companies this year as corporate customers cut back. But the bankruptcy of rival Nortel Networks Corp. (NT) this month could put some customers up for grabs.
Juniper Chief Executive Kevin Johnson said Thursday "we continue to play offense and grow market share, while at the same time taking action to responsibly manage our cost structure. The long-term growth fundamentals...remain strong."
The company reported fourth-quarter net income of $132.5 million, or 25 cents a share, up from $122.9 million, or 22 cents a share, a year earlier. Excluding stock-compensation and acquisition-related costs, earnings rose to 32 cents from 27 cents.
Revenue climbed 14% to $923.5 million, rising 11% for products and 26% for services.
In October, the company projected earnings of 30 cents to 33 cents a share, and revenue of $921 million to $971 million.
Gross margin rose to 20.6% from 18.2% amid the sales gains and cost-cutting.
In December, BWS Financial Inc. analyst Hamed Khorsand lowered his investment rating on Juniper shares to sell from buy after AT&T Inc. (T) announced plans to reduce capital spending this year. "It is becoming clear that 2009 would be a difficult year for communications equipment companies, but with Juniper generating more than 70% of their revenues from carriers, the risk to earnings intensifies," wrote Khorsand.
Juniper's also competes with technology giant Cisco Systems Inc. (CSCO) and Motorola Inc. (MOT).
-By Aja Carmichael, Dow Jones Newswires; 201-938-5218; aja.carmichael@dowjones.com
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Publié le 29 janvier 2009 Copyright © 2009 Dowjones
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