Juniper Networks 3Q 2014 Results & Outlook Disappoint

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Juniper Networks, Inc. JNPR reported preliminary financial results Thursday for the three months ended September 30, 2014 and provided its outlook for the three months ending December 31, 2014.

Net revenues for the third quarter of 2014 decreased 5 percent year-over-year and decreased 8 percent sequentially to $1.126 billion, below the average estimate of $1.13 billion.

Non-GAAP net income was $165.4 million, or $0.36 per diluted share for the third quarter of 2014, slightly above the average estimate of $0.35. Non-GAAP net income per diluted share decreased 10% compared to the second quarter of 2014, and increased 9% compared to the third quarter of 2013.

GAAP net income of $103.6 million, or $0.23 per diluted share for the third quarter of 2014. The GAAP diluted income per share includes a $0.03 benefit from restructuring and other charges.

The company guided that revenues for the 4Q 20124 will be in the range of $1.025 billion to $1.075 billion,  below the average estimate of $1.18 billion.

"We are disappointed in our third quarter revenue results, which reflect a lower-than-anticipated demand from service providers, particularly in the U.S.," said Shaygan Kheradpir, chief executive officer of Juniper Networks. "However, the underlying long-term demand trends in networking remain intact. While we navigate these dynamics, we are relentlessly focused on managing operating expenses while providing the innovation that matters most to our customers. We continue to have confidence in our business and see substantial opportunities to drive profitable growth and increase the value of our shareholders' investment over the long-term."

The company’s 2015 outlook forecasted that Non-GAAP operating expenses will be $1.9 billion, plus or minus $25 million, which is approximately $130 million lower than the full year 2014 operating expense levels.  The company planned $1.5 billion of aggregate share repurchases to be completed before Q2'15.

Juniper Networks, Inc. traded at $19.45 in the aftermarket, down 4.28 percent.

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Posted In: EarningsNews
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