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Juniper (JNPR) Trumps Q2 Earnings and Revenue Estimates
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Juniper Networks Inc. (JNPR - Free Report) reported relatively modest second-quarter 2018 results on the back of a solid performance from the cloud vertical and growth in enterprise business. Despite year-over-year decrease in earnings and revenues, the company beat the respective estimates and remains confident of returning to a growth trajectory by the end of the year.
GAAP earnings decreased to $116.5 million or 33 cents per share from $179.8 million or 47 cents per share in the year-earlier quarter primarily due to lower revenues, which fell 8% year over year. Non-GAAP earnings for the reported quarter were $170.2 million or 48 cents per share compared with $220.5 million or 57 cents per share in the year-ago quarter owing to top-line woes. Non-GAAP earnings, however, beat the Zacks Consensus Estimate of 43 cents.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Net revenues for the quarter were $1,204.1 million compared with $1,308.9 million in the prior-year period. The top line exceeded the Zacks Consensus Estimate of $1,172 million. Product revenues (accounting for 68.5% of total revenues) decreased 10.1% on a year-over-year basis to $824.9 million on lower demand for routing and switching products, partially offset by positive momentum in security products.
Services revenues (31.5% of total revenues) were down 3.2% year over year to $379.2 million, largely due to the adoption of new accounting standards (ASC 606).
Geographically, revenues increased to $308.9 million from $288.2 million in EMEA (Europe, Middle East and Africa) due to healthy performance in enterprise business. Quarterly revenues decreased 15.6% in the Americas to $675.7 million due to lower cloud and service provider business, while remaining flat in Asia Pacific at $219.5 million.
By verticals, revenues from Cloud and Service Provider businesses declined 26.3% and 7%, respectively, to $279.8 million and $523.3 million due to architectural shifts in the former and adoption of ASC 606 in the latter. Revenues from the Enterprise vertical jumped to $401 million from $366.9 million in the year-ago quarter, due to the favorable impact from the adoption of ASC 606.
Margins
Non-GAAP operating margin decreased to 18.5% from 24.2% on a year-over-year basis due to lower revenues, customer and product mix and higher service costs, partially offset by improvements in the cost structure.
Balance Sheet & Cash Flow
Total cash, cash equivalents and investments as of Jun 30, 2018 were $3,530.5 million, while long-term debt was $1,788.2 million. Net cash flow from operations was $441.4 million for the first six months of 2018 compared with $845.3 million in prior-year period.
Outlook
Juniper anticipates recording sequential growth in third-quarter 2018 with margin improvement, driven by steady demand patterns, higher volumes and cost structure efficiencies. The company expects revenues of approximately $1,170 million (+/- $30 million) for the third quarter. Non-GAAP gross margin is projected to be around 59% (+/- 1%). The company expects non-GAAP operating margin of 17.1%. Non-GAAP earnings are anticipated to be 44 cents per share (+/- 3 cents).
Motorola has long-term earnings growth expectations of 8.5%. It has a positive earnings surprise history with an average of 12.1% in the trailing four quarters, beating estimates in each.
Verizon has long-term earnings growth expectations of 6.2%. It has a positive earnings surprise history with an average of 2.1% in the trailing four quarters, beating estimates twice.
Windstream has a positive earnings surprise history with an average of 23.9% in the trailing four quarters, beating estimates twice.
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Juniper (JNPR) Trumps Q2 Earnings and Revenue Estimates
Juniper Networks Inc. (JNPR - Free Report) reported relatively modest second-quarter 2018 results on the back of a solid performance from the cloud vertical and growth in enterprise business. Despite year-over-year decrease in earnings and revenues, the company beat the respective estimates and remains confident of returning to a growth trajectory by the end of the year.
GAAP earnings decreased to $116.5 million or 33 cents per share from $179.8 million or 47 cents per share in the year-earlier quarter primarily due to lower revenues, which fell 8% year over year. Non-GAAP earnings for the reported quarter were $170.2 million or 48 cents per share compared with $220.5 million or 57 cents per share in the year-ago quarter owing to top-line woes. Non-GAAP earnings, however, beat the Zacks Consensus Estimate of 43 cents.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Juniper Networks, Inc. Price, Consensus and EPS Surprise | Juniper Networks, Inc. Quote
Top-Line Details
Net revenues for the quarter were $1,204.1 million compared with $1,308.9 million in the prior-year period. The top line exceeded the Zacks Consensus Estimate of $1,172 million. Product revenues (accounting for 68.5% of total revenues) decreased 10.1% on a year-over-year basis to $824.9 million on lower demand for routing and switching products, partially offset by positive momentum in security products.
Services revenues (31.5% of total revenues) were down 3.2% year over year to $379.2 million, largely due to the adoption of new accounting standards (ASC 606).
Geographically, revenues increased to $308.9 million from $288.2 million in EMEA (Europe, Middle East and Africa) due to healthy performance in enterprise business. Quarterly revenues decreased 15.6% in the Americas to $675.7 million due to lower cloud and service provider business, while remaining flat in Asia Pacific at $219.5 million.
By verticals, revenues from Cloud and Service Provider businesses declined 26.3% and 7%, respectively, to $279.8 million and $523.3 million due to architectural shifts in the former and adoption of ASC 606 in the latter. Revenues from the Enterprise vertical jumped to $401 million from $366.9 million in the year-ago quarter, due to the favorable impact from the adoption of ASC 606.
Margins
Non-GAAP operating margin decreased to 18.5% from 24.2% on a year-over-year basis due to lower revenues, customer and product mix and higher service costs, partially offset by improvements in the cost structure.
Balance Sheet & Cash Flow
Total cash, cash equivalents and investments as of Jun 30, 2018 were $3,530.5 million, while long-term debt was $1,788.2 million. Net cash flow from operations was $441.4 million for the first six months of 2018 compared with $845.3 million in prior-year period.
Outlook
Juniper anticipates recording sequential growth in third-quarter 2018 with margin improvement, driven by steady demand patterns, higher volumes and cost structure efficiencies. The company expects revenues of approximately $1,170 million (+/- $30 million) for the third quarter. Non-GAAP gross margin is projected to be around 59% (+/- 1%). The company expects non-GAAP operating margin of 17.1%. Non-GAAP earnings are anticipated to be 44 cents per share (+/- 3 cents).
Zacks Rank and Stocks to Consider
Juniper currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are Motorola Solutions, Inc. (MSI - Free Report) , Verizon Communications Inc. (VZ - Free Report) and Windstream Holdings, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Motorola has long-term earnings growth expectations of 8.5%. It has a positive earnings surprise history with an average of 12.1% in the trailing four quarters, beating estimates in each.
Verizon has long-term earnings growth expectations of 6.2%. It has a positive earnings surprise history with an average of 2.1% in the trailing four quarters, beating estimates twice.
Windstream has a positive earnings surprise history with an average of 23.9% in the trailing four quarters, beating estimates twice.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>