Here’s Why Network Processor Stocks Are Getting Bludgeoned
Quick answer: Sector leader Juniper Networks (NYSE:JNPR) reported second quarter earnings Tuesday that missed the beat by all marks. EPS came in at $0.31, $.03 off a $0.34 consensus target. Revenues were 1.12B (+15% Y/Y), but still $30 million short of analyst estimates. The company also lowered its Q3 guidance for revenues, setting a range of 1.07B-$1.12B ($1.22B expected), and earnings per share, range of $0.26-$0.30, below consensus $0.38. Shares opened 11% lower this morning and have continued to reel in trading across the day. Competitor’s stocks are moving lower in sympathy as the rug is getting pulled out from under across the tech sector (NYSE:XLK) today, down -2.09%.
Here’s a look at how Juniper and others in the space are trading:
Juniper Networks (NYSE:JNPR) -21.24%, Cisco System (NASDAQ:CSCO) -3.25%, Alcatel-Lucent (NYSE:ALU) -5.93%, Extreme Networks (NASDAQ:EXTR) -2.84%, Hewlett-Packard (NYSE:HPQ) -1.55%, ADTRAN Inc. (NASDAQ:ADTN) -5.00%, Dell (NASDAQ:DELL) -3.07%, Tellabs Inc. (NASDAQ:TLAB) -8.60%, Riverbed Technology (NASDAQ:RVBD) -5.75%, and Ciena Corporation (NASDAQ:CIEN) -10.49%.