Juniper Networks Inc. JNPR stock dropped nearly 5% in the extended session Tuesday after the tech company beat Wall Street expectations for its first quarter but said that ongoing parts shortages and supply-chain “challenges” continued to hit its business. Juniper earned $85.4 million, or 26 cents a share, in the quarter, compared with $56 million, or 17 cents a share, in the year-ago quarter. Adjusted for one-time items, the company earned 48 cents a share. Revenue rose 17% to $1.37 billion. Analysts polled by FactSet expected adjusted EPS of 43 cents a share on sales of $1.34 billion. Juniper is experiencing “ongoing supply-chain challenges, which have improved in the last quarter, but continue to result in extended lead times, as well as elevated logistics and component costs,” the company said. Despite the company’s best efforts to manage the shortages, “elevated costs and extended lead times will persist through 2023 for a portion of our portfolio,” Juniper said. The situation is “dynamic” and Juniper has access to enough supplies of semiconductors and other components to meet its financial forecast, the company said. Juniper guided for current-quarter revenue of about $1.41 billion, plus or minus $50 million, and adjusted EPS of 54 cents, plus or minus 5 cents. Shares of Juniper ended the regular trading day down 0.9%.
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