Business Corpus: Cisco Rival Juniper Beats Views As Cloud Computing Sales ReboundTurnaround project Juniper Networks late Tuesday reported better-than-expected first-quarter earnings as sales of networking gear to cloud computing customers rebounded, sparking a rally. The post Cisco Rival Juniper Beats Views As Cloud Computing Sales Rebound appeared first on Investor's Business Daily.

[Collection]

Turnaround project Juniper Networks (JNPR) late Tuesday reported better-than-expected first-quarter earnings as sales of network gear to cloud computing customers rebounded, sparking a rally that faded as the session wore on.

A rival of Dow Jones component Cisco Systems (CSCO), Juniper reported progress during the quarter, selling more network gear to cloud computing providers to the likes of Amazon.com (AMZN), Microsoft (MSFT) and Oracle (ORCL). Its biggest customers have been telecom companies, such as AT&T (T).

"The cloud (business) improved with projects that were previously paused moving forward, contributing 25% of sales, up 4% quarter-over-quarter," Raymond James analyst Simon Leopold said in a note to clients. "We expect the trend continues."

Shares in Juniper jumped 8% at one point. But it surrendered those gains and ended the day up 0.7% to 24.92 on the stock market today.

Sunnyvale, Calif.-based Juniper has initiated a turnaround under its new chief executive, Rami Rahim.

Juniper Beats Estimates

The gear maker said earnings were 28 cents a share, down 39% from a year earlier but topping estimates of 25 cents. Revenue fell 11% to $1.08 billion, ahead of views for $1.05 billion.

For the June quarter, it forecast profit of 44 cents a share, a penny above consensus estimates. Juniper said it expects revenue in a range of $1.15 to $1.2 billion vs. predictions of $1.16 billion.

"Cloud customers continue to work through transitioning from high-margin to lower-margin routers, causing significant pressure to routing revenue," William Blair analyst Dmitry Netis said in his report to clients.

Juniper also competes with Arista Networks (ANET), which reports earnings late Thursday.

Arista has the highest Composite Rating in IBD's Computer Networking group. It's ranked No. 15 in the IBD 50 roster of high-growth companies.

YOU MAY ALSO BE INTERESTED IN:

The Big Squeeze: New Risks For Fed Interest Rates, Recession And Yield Curve

Nvidia, Apple: How To Avoid Getting Chopped Up During Market Volatility

Sell And Take Profits Or Hold? Here Are Several Guidelines To Follow

Chart-Reading Basics: How A Buy Point Marks A Time Of Real Opportunity

The post Cisco Rival Juniper Beats Views As Cloud Computing Sales Rebound appeared first on Investor's Business Daily.