Juniper Networks exceeded analysts’ expectations in Q4 2009, posting revenue of $941 million. But those same analysts aren’t giddy about the current quarter.
Catherine Trebnick of Avian Securities says her company is maintaining its negative opinion about Q1 2010. “Our cautious stance remains predicated on longer term challenges in the service provider segment,” she writes.
Three key trends factor into her opinion:
- Operators are shifting toward less expensive Ethernet platforms, driving down price per port for routers.
- Juniper is missing key partnerships for packet optical networks with key RFP’s underway (Verizon Packet Optical RFP).
- The company still lacks wireless DNA and project Falcon timing is available after key LTE supplier decisions.
That being said, this year, the company is bound to reap the rewards of AT&T’s decision to spend $2 billion on building out its wireline backhaul network to prepare for LTE and increase capacity.
In Q4, much of Juniper’s success came from increased demand among North American operators, particularly AT&T.
Juniper stock was trading almost 5 percent higher Friday morning at 10:45 ET.
