Juniper Networks Inc. (Nasdaq: JNPR) shares were up slightly in late afternoon trading today, but they haven’t yet fully recovered from the panic set off yesterday when rumors struck that the company had adjusted its quarterly outlook and would miss the quarter.
Only one problem: the remarks were misinterpreted. Here's the story:
Juniper’s CFO Marcel Gani, addressing a group at an investment conference Thursday, said that the softening economy creates the risk that the quarter’s results could decline as much as 10 percent.
The remarks were widely publicized on the financial television stations, sparking a selloff in Juniper shares, which fell 4.56 (7.68%) to 53.44, most of the plunge coming Thursday afternoon.
So what's the twist? Gani wasn't saying anything new. He made similar remarks during the company’s first quarter conference call last month. "We believe there is a 10 percent macro risk in our ability to [achieve projected] results,” he said at the time (see Juniper Upbeat on Q1 Earnings ).
Juniper officials said there has been no official change in guidance.
Some analysts were unfazed by the mini-panic. “I’m a little worried about the June period, but that’s because I think the next-generation box is coming soon and there might be some issues as they transition to a new product,” says Salomon Smith Barney's Alex Henderson. “But we’re not worried about what they’ve delivered to date.”
Juniper shares ended the day up 1.37 (2.56%) at 54.81.
At its last conference call, Juniper said that it expects a 2001 growth rate of roughly 85 percent to 100 percent over last year's levels. The low end of revenues for 2001 are expected to be about $1.2 billion. Those figures were some 11 percent to 18 percent lower than Juniper had given on previous earnings calls.
re: Juniper Shares Search for Guidance In the recent statement it says revenues will be between 90 and 100% of the estimate, simple enough.
On the con call they said there is a 90% chance of hitting 100% of their estimate. At least that's how I understood the call. 10% risk in not achieving the full estimate.
That means he said something new at the conference.
-bien64
**** JuniperGÇÖs CFO Marcel Gani, addressing a group at an investment conference Thursday,said that the softening economy creates the risk that the quarterGÇÖs results could decline as much as 10 percent. ****
**** So what's the twist? Gani wasn't saying anything new. He made similar remarks during the companyGÇÖs first quarter conference call last month. "We believe there is a 10 percent macro risk in our ability to [achieve projected] results,GÇ¥ he said at the time. ****
re: Juniper Shares Search for Guidance Dear JNPR, We tried to give you really nice advance pr story on the 768c that you didn't really introduce, when that didn't materialize we tried to write a really nice smarmy piece on your mpls announcement about stuff you had already been talking about, and now we are all apologetic over your confusing (new) guidance. We love you. -Light Reading
re: Juniper Shares Search for Guidance I'm typically very pro-Lightreading, but what a great email. This is the first time I've seen LR cover for JNPR. The other times I probably did see all the bias towards JNPR, but this time I really do. Can you imagine if this were CSCO, FDRY or NT?
re: Juniper Shares Search for Guidance Ya gotta cover your customers! If it was CSCO, They would be crowning the new king (JNPR). Call it business as usual, call it bias, it's always the same old song 'n' dance.
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