Juniper Networks’ Stock Falls on Margin Pressure Outlook

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By Maria Armental

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Juniper Networks Inc.’s stock fell 8% to $30.80 as the company warned that it now sees higher profit-margin pressure from freight costs and other supply-chain expenses.

On Tuesday, the company said it expects supply-chain constraints to extend through the year and be particularly tight in the second quarter. As a result, it said that it now expects adjusted gross profit margin for the year to be below the midpoint of its earlier 58% to 60% forecast range, which was already slightly down from 2021 levels.

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Juniper swung to a first-quarter profit of $55.7 million, or 17 cents a share. Excluding stock-based compensation and other items, Juniper reported a profit of 31 cents a share. The per-share results were slightly shy of the analyst consensus, according to FactSet.

Revenue, however, rose a stronger-than-expected 9% to $1.17 billion.

The company expects about $1.26 billion in revenue in the June quarter and said that, given the strong order momentum and current backlog, it still expects 7% to 9% revenue growth for the year. That forecast, it said, assumes the current supply-chain environment remains constrained throughout the year, similar to current levels, and that it doesn’t deteriorate.

In addition, it said that it expects revenue to grow sequentially and backlog to remain at elevated levels.

Write to Maria Armental at [email protected]

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Credit: www.marketwatch.com /

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