Juniper Networks is facing tempered market reaction four days ahead of its first quarter earnings call – the stock is already trading at $21.16, a decline of no less than eight percent.
The main reason behind the share price drop is a consensus estimate of 7 centers per share in Q1 — a 72 percent decrease compared to last year, and 14 cents less than the average estimate just three months ago. The forecast of Juniper’s annual earnings is a bit more cheery at 68 cents per share.
Revenue is also expected to disappoint at $998, or about 11 percent less than the $1.1 billion the networking equipment maker reported for the same period in the last fiscal year.
In spite of all this, things are not that dire right now. Forbes reports that 18 out of the 27 analysts watching the stock maintain a hold rating, and there may be a strong chance for a comeback.
“On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 20.7% in the first quarter of the last fiscal year, 14.5% in the second quarter of the last fiscal year and 9.2%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.”
While Juniper may have some work in the financial scene, it can’t be said that it hasn’t been spreading its horizons as of late. More specifically, the acquisition of security firm Mykonos for $80 million added some very serious assets to the company’s portfolio, at the core of which stands a system designed to fend off cyberattacks by outwitting and then tracking down the people responsible.
