Juniper Shares Fall After Earnings; company says supply chain impacts may persist
Shares of Juniper Networks Inc. were down 6% in after-hours trading on Tuesday after the networking company noted that it anticipates “high costs” throughout the year as it was going through supply chain disruptions.
The company generated net income of $55.7 million, or 17 cents per share, compared with a loss of $31.1 million, or 10 cents per share, in the year-ago quarter. On an adjusted basis, Juniper earned 31 cents per share, while the FactSet consensus was 32 cents per share.
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revenue rose to $1.17 billion from $1.07 billion a year earlier, while analysts tracked by FactSet had modeled $1.16 billion.
Juniper chief executive Rami Rahim said in a statement that the company saw double-digit order growth across all of its verticals and customer solutions in the last quarter.
“While some of this strength is a testament to the health of our markets, much of this demand can be attributed to strong execution in our product management, engineering and go-to-market organizations,” said he added.
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Still, Juniper noted that it continues to see supply chain impacts, and it expects it to encounter “prolonged lead times and high costs” at least through the end of the month. year.
“Like others, we experience ongoing supply chain challenges that have resulted in extended lead times, as well as high logistics and component costs,” the company explained. “We continue to work to resolve supply chain issues and have increased inventory levels and purchase commitments.”
For the June quarter, Juniper is modeling revenue of $1.205 billion to $1.305 billion, along with adjusted earnings per share of 40 to 50 cents. The FactSet consensus was $1.26 billion in revenue and 46 cents in adjusted earnings per share.