Juniper Networks Inc. (JNPR) - Get Report tumbled 7.6% to $25.83 on Wednesday after the computer network equipment maker reported "disappointing" fourth-quarter sales and warned of continued weakness with its cloud customers in the first quarter.
The Sunnyvale, California-based company reported non-GAAP earnings of $205.7 million, or 59 cents a share, compared with $199.4 million, or 53 cents, a year ago. Analysts expected profit of 57 cents a share.
Revenue totaled $1.18 billion, down from $1.24 billion a year ago, and missed Wall Street's expectations of $1.22 billion.
"We are disappointed by our Q4 sales, as continued weakness with several of our cloud and service provider customers more than offset solid momentum in our enterprise business," CEO Rami Rahim said in a statement. "We are taking actions to drive improved sales execution and capitalize on the attractive end market opportunities that we expect to emerge in 2019."
For the year, Juniper Networks reported earnings of $566.9 million, or $1.60 a share, while revenue totaled $4.65 billion, down 7.6% from a year ago.
For the current quarter ending in April, Juniper said it expects earnings to range from 17 cents to 23 cents a share. The company said it expects revenue in the range of $950 million to $1.01 billion for the first quarter, while analysts had expected revenue of $1.1 billion. Juniper said it expects full-year 2019 earnings to be in the range of $1.75 to $1.85 a share.
"Our Q1 revenue outlook reflects continued weakness with our cloud customers," Rahim said. "In addition, we are transitioning our go-to-market organization to enable our strategy. While we are confident these changes will lead to long-term growth, this may result in short-term challenges."
Rahim said the company also factored in the partial U.S. federal government shutdown and "geopolitical uncertainty which we believe could adversely impact our business in the early part of 2019."