Updated from 4:46 p.m.


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shares rose 5% after the company posted a solid quarter and guided higher.

For the first quarter ended in March, the Sunnyvale, Calif., networking shop posted adjusted net income of $92 million, or 16 cents a share, on $449 million in sales. Those numbers compare with an adjusted 8-cent profit on $224 million in revenue in the year-ago quarter. Analysts were looking for a 15-cent profit on $440 million in sales, according to Thomson Financial First Call.

On a GAAP basis, Juniper earned $75.4 million, or 13 cents a share. That was more than double the profits recorded a year ago.

On a conference call with analysts Tuesday, Juniper CFO Ron Dykes raised guidance for the current quarter ending in June. Dykes says he sees the company hitting an adjusted profit of 17 cents a share on revenue of between $470 million and $475 million. Analysts were looking for adjusted EPS of 16 cents on $458 million, according to Reuters Research.

Dykes also said gross margins would be flat to up in the second quarter.

"Their guidance saved the day," says one hedge fund manager who has no Juniper position.

Indeed, though the first quarter was the company's 11th consecutive target-beating quarterly performance, gross margins were a little narrower than expected, and investors looking for blockbuster numbers may have found little encouragement. Latest-quarter margins fell to 68% from 70% in the fourth quarter, in line with Juniper's guidance.

Still, the news suggests Juniper is holding its own even as smaller rivals such as


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warn of order slowdowns.

"We are once again pleased with the results behind a solid quarter of growth in both our financial metrics as well as our marketplace progress," CEO Scott Kriens said in a press release Tuesday.

Juniper added $1 in postclose action to $22.27.