Juniper Networks (JNPR) drops 10% as it beat on earnings and revenue but provided weak guidance.
The company posted earnings of $0.53 per share versus expectations of $0.52 and revenue of $1.24 billion versus an expected $1.23 billion.
However, Juniper Networks forecast Q1 earnings of $.25 per share versus expectations of $0.42, which sent the stock lower.
This is due to delays in implementation for select large customers in its cloud computing segment. It is unclear when things will improve but it is possible that it could take a full year.
Our analysis of market cycles in JNPR, shown in the chart below, suggest possible continued downside action.
We are looking at a target of $23 by March, with additional risk for Juniper Networks stock later in the year.
The market cycles on the charts below are designated by the purple semicircles at the bottom of the chart.
Juniper Networks earnings bust aligning with market cycles…
JNPR Stock Chart (Weekly Bars)
Visit our site for more on our approach to using market cycles to analyze stocks.
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