Shares of Juniper Networks Inc. were off 6% in after-hours trading Tuesday after the networking company noted that it anticipates “elevated costs” throughout the year as it works through supply-chain disruptions.
The company generated net income of $55.7 million, or 17 cents a share, versus a loss of $31.1 million, or 10 cents a share, in. the year-earlier quarter. On an adjusted basis, Juniper earned 31 cents a share, whereas the FactSet consensus was for 32 cents a share.
revenue rose to $1.17 billion from $1.07 billion a year prior, while analysts tracked by FactSet had been modeling $1.16 billion.
Juniper Chief Executive Rami Rahim said in a release that the company saw double-digit order growth in all of its customer verticals and customer solutions during the latest quarter.
“While some of this strength speaks to the health of our markets, much of this demand can be attributed to strong execution across our product-management, engineering and go-to-market organizations,” he added.
Still, Juniper noted that it continues to see supply-chain impacts, and it expects that it will encounter “extended lead times and elevated costs” at least through the end of the year.
“Similar to others, we are experiencing ongoing supply-chain challenges, which have resulted in extended lead times, as well as elevated logistics and component costs,” the company shared. “We continue to work to resolve supply-chain challenges and have increased inventory levels and purchase commitments.”
For the June quarter, Juniper models $1.205 billion to $1.305 billion in revenue, as well as 40 cents to 50 cents in adjusted earnings per share. The FactSet consensus was for $1.26 billion in revenue and 46 cents in adjusted earnings per share.