Shares of two network gear companies - Juniper Networks, Inc.(NYSE:JNPR) & Riverbed Technology, Inc.(NASDAQ:RVBD)- jumped sharply in after hours on Tuesday as both the companies reported solid quarterly earnings.
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Unlike other companies in the sector, Riverbed Technology, Inc.(NASDAQ:RVBD) provided solid earnings forecast as the company expects solid demand for its wide area network (WAN) equipment business, over shadowing the ongoing concern about weakling demand due an ongoing crisis in the European region.
Riverbed Technology projects to earn 25 cents to 26 cents per share on revenue range of $214 million to $219 million in the third quarter, ahead of analysts’ target of 24 cents per share, on revenue of $209.7 million.
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For the second quarter, the company posted profit of $18 million, or 11 cents per share, up from a year ago profit of $11.3 million, or 7 cents a share. On an adjusted basis, the company earned 23 cents per share and revenue rose 23% year over year to %$ $199 million, again topping analysts’ forecast of 21 cents per share on revenue of $194.4 million.
Noticebly, the company witnessed growth across all major geographies and revenue growth accelerated across core product offerings.
As a result, shares of RVBD soared 23.50% to $17.97 in after hours, its two month-high. As of yesterday’s closing, the stock was down 38% year to date.
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Also, Juniper Networks, Inc.(NYSE:JNPR) shares jumped over 3% in after hours as the company reported better than estimated second-quarter revenue and profit. The company earned 19 cents a share on revenue of $1.07 billion, ahead of analysts’ target of 16 cents a share on revenue of $1.05 billion.
For the third quarter, the company projects to earn 15 cents to 18 cents a share on sales of $1.04 billion to $1.08 billion. Analysts on average had estimated profit of 21 cents and revenue of $1.11 billion.
Talking about the overall sector, last week F5 Networks, Inc.(NASDAQ:FFIV) had forecasted weak guidance last week for its fourth quarter saying it remained cautious as telecom spend continued to sputter. Rival Acme Packet, Inc.(NASDAQ:APKT) too reduced its second-quarter estimates as orders slowed.