Riverbed Technology, Inc. (NASDAQ: RVBD) is getting hit very hard, perhaps even too hard, after its 53% profit gains beat expectations and revenue met estimates more or less. The problem is that the company’s guidance for the quarter ahead remains challenging. Riverbed was up 1.2% at $29.92 today but now the stock is down almost 13% in the after-hours session to $26.00 per share in active trading.
So, as far as Juniper is concerned, its non-GAAP profit fell to $0.28 EPS from $0.35 a year earlier while revenue fell to $1.12 billion from $1.19 billion a year earlier. Those were more or less in-line with estimates, but the company talked about the current quarter being a challenging one and it cut sales expectations to $960 to $990 million versus a target of about $1.1 billion. That is just heading very much in the wrong direction no matter how you cut it. Juniper closed down 1% today and the after-hours earnings reaction has shares down almost 8% at $20.60 in active after-hours trading.
There is an old saying that a tail cannot wag the dog. Unfortunately that is not proving to be the case this evening. Cisco Systems, Inc. (NASDAQ: CSCO) is the king of the networking space and its shares are down 1% at $19.62 in the after-hours after closing flat at $19.83. Cisco is in a turnaround and it is believed by many that Cisco is trying to win back much of its lost business in a leaner operating structure. We’ll know in the coming weeks if that is true or not.
Stay tuned.
JON C. OGG
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