Juniper Profit Tops Estimate, Provides Weak Q4 Guidance; Stock Down 6%

(RTTNews) - Computer networking gear maker Juniper Networks Inc. (JNPR) Thursday reported third-quarter net earnings of $103.6 million or $0.23 per share compared with $99 million or $0.19 per share last year.

Excluding items, adjusted earnings for the quarter were $0.36 per share compared with $0.33 per share a year ago.

On average, 33 analysts polled by Thomson Reuters estimated earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter were down 5 percent at $1.13 billion compared with $1.19 billion in the prior year.

Thirty-one analysts had a consensus revenue estimate of $1.13 billion for the quarter.

Looking ahead to the fourth quarter, Juniper expects earnings of $0.28 to $0.32 per share on revenues of $1.03 billion to $1.08 billion. Analysts expect earnings of $0.41 per share on revenues of $1.18 billion.

Also Juniper announced additional cost reductions of about $100 million, and increased its total annualized commitment to $260 million, in order to lower operating expenses while improving profitability and long-term growth.

"This initiative will improve Juniper's cost structure and continue earnings growth as the company navigates through current market conditions," Juniper said.

Key components to the cost reductions include a careful management of headcount, focus on improved efficiencies and prioritization of revenue-generating projects.

Juniper declared a quarterly cash dividend of $0.10 per share.