(Reuters) – Juniper Networks forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud computing clients in a turbulent economy, sending the shares of the networking equipment maker down 6% after the bell.
Cloud service providers have been cutting back on orders for infrastructure equipment such as routers and switches in a blow for companies like Juniper Networks due to an overall drop in tech spending.
“We are currently facing some near-term order weakness from our cloud and to a lesser degree our service provider customers,” CEO Rami Rahim said.
Juniper, which also provides network management software for companies like AT&T, Seagate and BlackBerry, said it expects revenue of about $1.38 billion, plus or minus $50 million, in the third quarter.
Analysts on average expected revenue of $1.48 billion, according to Refinitiv data.
It forecast adjusted earnings per share of 54 cents, plus or minus 5 cents, which was below expectations of 62 cents.
In the second quarter, the company’s net revenue rose to $1.43 billion, beating expectations of $1.42 billion, thanks to higher demand and increased product backlog.
On an adjusted basis, the company earned 58 cents per share, compared with estimates of 55 cents.
(Reporting by Zaheer Kachwala; Editing by Pooja Desai and Arun Koyyur)
