Juniper Rallies as Investors Reward Candor

The wind is whipping and the rain is picking up, but Juniper Networks (JNPR Quote) keeps driving the middle of the fairway as customers step up to buy its gear to build the Internet.

Juniper Thursday dodged a first-quarter lightning strike, in the form of a dramatic spending pullback from top customers such as Worldcom (WCOM Quote), by adding enough new customers to keep first-quarter earnings in line with estimates. Still, the Internet router manufacturer acknowledged it is feeling the pinch, cutting its full-year sales target to between $1.2 billion and $1.3 billion, from the $1.5 billion to $1.6 billion it had projected in January.

Admitting that uncertainty is about the only thing it's sure of for now, Juniper also forecast flat sales and profit for the second quarter. The company cut its second-quarter earnings forecast to 25 cents a share, from the 26 cents analysts had expected, according to the Thomson Financial/First Call survey. Still, analysts were refreshed by the candor, and relieved investors pushed the stock up 19%.

Rain on Me

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