Juniper Networks -5.7% on bad prelims, but MKM calls sector peers immune

Oct. 12, 2017 11:42 AM ET|By: Jason Aycock, SA News Editor 

Juniper Networks (NYSE:JNPR) has followed up postmarket declines yesterday with a 5.7% drop today after the company noted preliminary Q3 results are being hurt by a disappointing cloud vertical.

Also lower today are peers Nokia (NOK -1%) and Cisco Systems (CSCO-0.5%), though MKM Partners thinks Juniper's announcement "looks company specific" and Natixis says that Nokia and Ericsson (NASDAQ:ERIC) won't see negative impact from Juniper results.

Cisco's quarter is trending positively despite facing some of the same issues as Juniper -- including virtualization of routers, cloud competition and reliance on expensive proprietary silicon, MKM's Michael Genovese says. (h/t Bloomberg)

Competition from Arista Networks (ANET -0.8%) is a Juniper headwind; MKM is expecting an earnings beat/raise from Arista and a miss from F5 Networks (FFIV +0.2%).