Network gear maker Juniper Networks (JNPR) reported lower earnings in the first quarter, owing to a decline in revenues. However, the bottom topped analysts’ expectations, driving the stock up in the after-hours trading session.
First quarter earnings dropped to $34.4 million or $0.10 per share from $108.8 million or $0.28 per share in the same period last year. Earnings, adjusted for special items, fell 47% to $0.28 per share, but exceeded expectations.
Revenues decreased 11% to $1.08 billion during the three-month period, dragging operating margins by 12.8%.
“While our margins came in below historical levels during the March quarter, we met the profitability targets we set for the period, which enabled earnings to come in at the high-end of guidance,” said Juniper CFO Ken Miller.
For the second quarter, Juniper expects to record revenues of $1.18 billion, and adjusted gross margin of 59%. The company is looking for adjusted earnings of $0.44 for the second quarter.