Juniper Networks third-quarter beats estimates
(Reuters) - Juniper Networks Inc's (JNPR.N) third-quarter results beat Wall Street estimates as sales of its products increased, but the network gear maker forecast fourth-quarter below expectations, citing cautious customer spend.
Network equipment makers have been hit as telecom service providers -- their biggest customers -- cut spending due to a faltering U.S. recovery and weakness in Europe.
Juniper, which supplies routers and switches to telecom companies such as Verizon Communications Inc (VZ.N) and AT&T Inc (T.N), expects fourth-quarter adjusted earnings of 19 cents to 22 cents per share and revenue of $1.10 billion to $1.13 billion.
Analysts on average were expecting fourth-quarter earnings of 24 cents on revenue of $1.15 billion, according to Thomson Reuters I/B/E/S.
However, the Sunnyvale, California-based company's shares were up about 2 percent at $18.00 after the bell as its third-quarter results beat market expectations.
"Third quarter results are very strong. Strong revenues, strong margins ... Risks to revenue next year are high, because new products don't seem very well received by the market," MKM Partners LLC analyst Michael Genovese said.
Juniper's net income for the third quarter fell to $16.8 million, or 3 cents per share, from $83.7 million, or 16 cents per share, a year earlier.
The net income includes a 16 cents per share impact from restructuring and other charges, the company said.
Juniper had said last quarter that it was cutting costs. Company spokeswoman Cindy Ta told Reuters on October 2 that Juniper was reducing its workforce by about 5 percent or 500 people, which would be affected through the end of October.
Excluding items, the company earned 22 cents per share.
Revenue rose 1 percent to $1.12 billion.
Analysts were expecting a third-quarter profit of 17 cents per share, on revenue of $1.06 billion.
(Reporting by Neha Alawadhi in Bangalore; Editing by Roshni Menon)