One more high power downgrade from ML and the stock hardly budged. In fact, when the downgrade was released the stock was up a fraction of a point.
[Hint: someone was buying if not ML and its clients]
Juniper earnings estimates cut on capex weakness - Merrill Lynch
AFX News UK, 3/20/2002 11:37:00 AM
SAN FRANCISCO, Mar 20, 2002 (AFX-UK via COMTEX) -- Juniper Networks Inc earnings estimates were lowered by Merrill Lynch analysts due to continued deterioration in the communications equipment market.
Juniper's first-quarter earnings per share estimate was trimmed to 1 cent from 3 cents prior, while sales were lowered to 131.0 mln usd from 150.0 mln, by the analysts.
Full-year 2002 EPS was cut to 13 cents from 19 cents, by the analysts, who cut sales forecasts to 561.0 mln usd from 660.0 mln.
The company's full-year 2003 EPS was lowered to 22 cents from 36 cents, while sales were reduced to 675.0 mln usd from 900.0 mln, by the analysts.
Capital spending of global service providers is expected to decline 11.0 pct in 2002 and 3.0 pct in 2003, the analysts said.
As the majority of Juniper's sales are from the US, the company will continue to be impacted as "US carriers will continue to cut capex spending," the analysts believe.
"We advise clients in the intermediate term to be cautious and wait to see when carriers begin to spend again and how Juniper's new product initiatives progress," the analysts said.
Long-term, the company's 'Strong Buy' rating was reiterated.
At 11.18 am in New York, Juniper was up 0.25 usd or 2.30 pct at 11.57, while the Nasdaq composite was down 31.97 points or 1.70 pct at 1,849.90.
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