Juniper Results Top Estimates; Outlook Light

(RTTNews) - Computer networking gear maker Juniper Networks Inc. (JNPR) said Tuesday after the markets closed that its third quarter profit surged from last year, helped by higher revenue and improved margins.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. For the fourth quarter, the company gave an in line earnings forecast, but the mid-point of its revenue forecast trailed analysts' current consensus estimate.

"We delivered our fifth consecutive quarter of year-over-year growth. Our performance reflects our continued ability to execute our strategy with agility in a dynamic macro environment," said Kevin Johnson, chief executive officer of Juniper Networks.

Juniper shares are currently losing 1.77% in after hours trading after closing the day's regular trading session at $20.36, down 49 cents or 2.35%. The shares trade in a 52-week range of $15.62 to $22.98.

The Sunnyvale, California-based company reported net income for the third quarter of $99.1 million or $0.19 per share, compared to $16.8 million or $0.03 per share for the year-ago quarter.

Excluding items, adjusted net income for he third quarter was $166.3 million or $0.33 per share, compared to $117.9 million or $0.22 per share in the prior year quarter.

On average, 32 analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the third quarter. Analysts' estimates typically exclude special items.

Reported operating margin for the quarter improved to 12.2% from 3.8% from a year ago, while adjusted operating margin increased to 19.8% from 16.9% last year.

Net revenues for the third quarter rose 6% to $1.19 billion from $1.12 billion in the same quarter last year. Third quarter revenue also grew 3% sequentially. Thirty-two analysts had a consensus revenue estimate of $1.17 billion for the third quarter.

For the third quarter, the company's Americas revenue increased 18%, while Europe, Middle East, and Africa revenue fell 4.7% and Asia Pacific revenue dropped 8% from a year earlier.

Juniper Networks repurchased 4.4 million shares during the third quarter for a total of $93 million.

Looking forward to the fourth quarter, the company forecast revenue of $1.20 billion to $1.23 billion and adjusted earnings of $0.35 to $0.37 per share. Analysts currently expect the company to earn $0.36 per share on revenue of $1.23 billion for the fourth quarter.

Juniper competes with networking giant Cisco Systems Inc. (CSCO) in the router industry. It supplies routers and switches to telecom companies such as Verizon Communications Inc. (VZ) and AT&T Inc. (T).

Juniper is yet to find a replacement for its retiring CEO Kevin Johnson. In July, the company said Johnson, would retire once a successor is named. The company's board has formed a search committee and has retained executive recruiting firm Heidrick and Struggles to assist in the search process.