Shares of Juniper Networks drop 7% on weak guidance

  • The data company estimated earnings would be between 41 cents and 47 cents per share for the next quarter, below a consensus estimated 43 to 55 cents by Thomson Reuters.
  • CEO Rami Rahim said their multicloud-sharing platforms have taken longer to materialize than the company expected, dipping into the California-based company's future income.
Juniper Networks
Simon Dawson | Bloomberg | Getty Images

Juniper Networks shares dropped on Friday after the company reported disappointing guidance for the third quarter, weighed down by delayed deployment of their automated multicloud-sharing platform.

The data company estimated earnings would be between 41 cents and 47 cents per share for the next quarter, below a consensus estimated 43 to 55 cents by Thomson Reuters. The company said it expects costs of its Cloud Solutions to impact third-quarter earnings.

Shares fell 7.3 percent at $26.18 per share on the news.

CEO Rami Rahim said their multicloud-sharing platforms have taken longer to materialize than the company expected, dipping into the California-based company's future income.

"While the timing of deployments is impacting our quarter-three outlook, we remain confident the business will return to year-over-year growth during quarter-four and that we have the right solution portfolio and strategy to drive sustained longer-term success," Rahim said in a statement.

A multi-cloud network streamlines applications end-to-end from the data center to business use, making data-sharing across multiple clouds accessible on one platform. Full-implementation would assist the data company's competitive edge against Cisco Systems and other cloud-sharers.

Despite the weak outlook, earnings for the second quarter beat estimates at 48 cents per share versus an expected 44 cents by Thomson Reuters. Net revenue for the quarter was $1.2 billion, decreasing 8 percent year-over-year, but still beating an estimated $1.18 billion by Thomson Reuters.

Juniper's stock was down about 1 percent for the year through Thursday's close.