Juniper Networks may not be out of the woods with analysts expecting "choppy" quarters ahead. But JNPR stock climbed Friday on its third quarter earnings report with sales in the corporate market a bright spot.
Reported after the market close on Thursday, Juniper earnings rose 3% to 60 cents. That topped estimates for 55 cents adjusted profit.
Revenue fell 1% to $1.398 billion, edging by estimates of $1.389 billion.
The maker of computer networking gear said it expects Q4 revenue in a range of $1.35 billion to $1.45 billion vs. consensus for $1.405 billion.
On the stock market today, JNPR stock rose 6.8% to 26.79 in morning action. JNPR stock has retreated 16% in 2023, including Friday's gain.
JNPR Earnings: Enterprise Market Gains
"Q3 results and Q4 guidance were solid," Jefferies analyst George Notter said in a report. "We still like Juniper's new product momentum, share gains vis-à-vis competitors and the increased enterprise exposure. Nonetheless, it's going to take several quarters to work through the excess inventory issues."
Sunnyvale, Calif.-based Juniper is a rival of Dow Jones component Cisco Systems as well as Arista Networks.
Arista reports Q3 results on Monday. ANET stock tumbled Thursday on the capital spending outlook of key customer Meta Platforms.
At Barclays, analyst Tim Long said in a report: "We believe enterprise share gains will continue, and increased software content can lead to another year of operating margin expansion. While telco and cloud are weak now, we think JNPR is well positioned and should participate when the end markets recover."
At UBS, analyst David Vogt said in a report: "Is first half 2024 the revenue trough? We think it is but highly likely but choppy quarters are ahead."
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