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Juniper Reports Better-Than-Expected Results

Company has been hurt by weaker demand, particularly in the U.S.

By Maria Armental

Updated April 23, 2015 5:52 p.m. ET

Juniper Networks Inc.’s profit fell in the first quarter, but the company reported better-than-expected results and guidance. The year-ago period was bolstered by an investment gain. 

Shares, down 3% over the past 12 months, rose 8% in recent after-hours trading on the better-than-expected results and guidance. They briefly topped the 52-week high of $25.70 set on May 29 during regular trading but later fell to $25.65, nearly 7% over its closing price Thursday.

For the current quarter, Juniper projects adjusted earnings per share of 38 cents to 42 cents on $1.09 billion to $1.12 billion in revenue, compared with the consensus of 38 cents a share on $1.09 billion in revenue, according to Thomson Reuters. 

The Sunnyvale, Calif., company, under pressure from shareholders Jana Partners LLC and Elliott Management Corp., has laid off workers, consolidated facilities and sold operations. In February, it agreed to add two independent directors to its board under a compromise with Elliott.

Juniper, which makes networking gear used by telecommunications companies and other operators, has been hurt by weaker demand, particularly in the U.S.

In November, Juniper Chief Executive Shaygan Kheradpir resigned following a board review of his conduct, particularly in negotiations with an unnamed customer. The company named Rami Rahim, an executive vice president and 17-year company veteran, to succeed Mr. Kheradpir.

In the most recent period, Juniper reported a profit of $80.2 million, or 19 cents a share, compared with $110.6 million, or 22 cents a share, a year earlier. Excluding stock-based compensation and other items, earnings rose to 32 cents a share from 29 cents a year earlier.

Revenue fell nearly 9% to $1.07 billion. 

Juniper had projected a profit of 28 cents to 32 cents a share on $1.02 billion to $1.06 billion in revenue, while analysts had expected 31 cents on $1.04 billion in revenue.

Gross margin improved to 62.1% from 61.5% a year earlier.