Juniper Slides After Sales Miss Forecast on Telecom Shortfallby
Stock drops as much as 10%, the most in almost three months
Enterprise customer business was `weaker than anticipated'
Juniper Networks Inc. fell the most in almost three months after the company said first-quarter profit and revenue fell short of forecasts on sluggish demand for networking equipment from telecommunications providers and corporate customers.
The shares fell 8.6 percent to $22.73 at 9:41 a.m. in New York, after dropping as much as 10 percent for the biggest decline since January 28. Sales came in at $1.09 billion to $1.1 billion, less than the company’s earlier projection for $1.15 billion to $1.19 billion, Sunnyvale, California-based Juniper said in a statement Monday, citing preliminary results. Profit excluding certain costs was 35 cents to 37 cents a share, compared with a prior forecast for 42 cents to 46 cents.
Juniper blamed the shortfall on the delay of orders from some major telecommunications companies in Europe and the U.S. Demand from enterprise customers was "weaker than anticipated," the company said.
“Although we expect results to be lower than our initial guidance for the first quarter, we remain constructive on fiscal 2016 and expect growth from new products to contribute to our top line,” Chief Executive Officer Rami Rahim said in the statement.
The network equipment maker plans to report final first-quarter results on April 28.