Why Juniper Networks Jumped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Juniper Networks (NAS: JNPR) jumped today by as much as 15% after the company reported preliminary earnings and announced a partnership with Riverbed Technology (NAS: RVBD) yesterday.

So what: Second-quarter revenue fell 4% to $1.1 billion, with adjusted net income of $103 million, or $0.19 per share. The results bested analyst expectations, but third-quarter guidance fell a little short due to macroeconomic concerns. Adjusted earnings per share are expected to be between $0.15 and $0.18 in the third quarter.


Now what: The networking specialist also announced a partnership with Riverbed, licensing its application delivery controller technology for use in its gear. Juniper is paying $75 million up front to Riverbed. Analysts expect telecom spending, which comprises over 60% of sales, to bounce back in the second half of the year. Juniper also has a new product lineup that will begin ramping up soon.

Interested in more info on Juniper Networks? Add it to your watchlist byclicking here.

The article Why Juniper Networks Jumped originally appeared on Fool.com.

Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Riverbed Technology.Motley Fool newsletter serviceshave recommended buying shares of Riverbed Technology.Motley Fool newsletter serviceshave recommended creating a stock position in Riverbed Technology. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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