(AOF) – Network equipment specialist Juniper Networks reported higher profits than expected. In the third quarter, the group posted net profit down 37% to $76.1 million, or 24 cents per share. Adjusted for exceptional items, earnings per share came to 60 cents, beating consensus by 5 cents. Turnover for its part fell by 1% to 1.4 billion dollars while the market was targeting 1.39 billion dollars.
For the fourth quarter, the technology group is targeting adjusted earnings per share of 58 cents to 68 cents on average. Over the last three months of the year, Wall Street expects 62 cents and 1.41 billion dollars respectively.
AOF – LEARN MORE
Find out more about the Telecom Equipment Manufacturers sector
Downgraded outlook for smartphones
Faced with a decline in consumer purchasing power, participants in the global smartphone market had to face sales falling by 14% in the first quarter of 2023 compared to the same period in 2022.
According to IDC, global sales will be lower than expected in the second half, showing a decline of 3.2% compared to 2022. A drop of 1.1% was previously estimated. The Gartner firm predicted from the start a decline of 4% in the market. Chinese brands are particularly impacted. Very exposed to their domestic market, Xiaomi, Oppo and Vivo have already lost market share in 2022 and the situation is expected to continue this year.
Apple and Samsung are doing better because, even if sales volumes drop, these players can play on prices and maintain their business more thanks to high-end positioning.
The market situation is expected to improve in 2024: growth is expected to become weak but continuous.