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What's in Store for Juniper (JNPR) This Earnings Season?

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Juniper Networks, Inc. (JNPR - Free Report) is scheduled to report third-quarter 2021 results on Oct 26, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.3%. The bottom line surpassed the Zacks Consensus Estimate by 4 cents.

The Sunnyvale, CA-based company is expected to have recorded year-over-year higher revenues on the back of strong momentum across its core industry verticals. Investments in customer solutions and sales organizations have enabled Juniper to capitalize on improving end-market conditions.

However, due to the worldwide shortage of semiconductors, Juniper is experiencing a component scarcity, which is resulting in extended lead times of certain products and elevated costs.

Factors at Play

During the quarter, CMC Networks, a global service provider of market-leading networking solutions, became the first Juniper partner to offer a managed AI-driven SD-WAN solution in Africa. By leveraging Juniper’s Session Smart Router technology driven by Mist AI, CMC is delivering a tunnelless solution that is designed for automated management with superior performance of real-time traffic.

Capital Online, a China-based global data center and cloud service provider, selected Juniper to build an expanded network infrastructure to support its growing cloud business while simplifying network operations management through automation.

SINET, a leading Internet and telecommunication service provider in Cambodia, selected Juniper to upgrade its network infrastructure.

In the quarter, Juniper collaborated with Intel to accelerate advancement in the Open RAN ecosystem. The move reflects Juniper’s efforts to bring openness and innovation to a traditionally closed-off part of the network, providing a faster route-to-market for service providers and enterprises to deliver 5G, artificial intelligence, and edge computing.

Juniper introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. These developments are likely to have had a positive impact on Juniper’s performance.

The Zacks Consensus Estimate for revenues in the Product segment is pegged at $783 million. The projection suggests a rise of 6.7% from the year-ago quarter’s reported figure. The consensus estimate for revenues from the Service segment is $424 million, which implies an increase from $405 million reported a year ago.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $1,206 million, which indicates growth of 6% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 46 cents, which suggests an increase of 7%.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Juniper this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Juniper’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 46 cents.

Juniper Networks, Inc. Price and EPS Surprise

Juniper Networks, Inc. Price and EPS Surprise

Juniper Networks, Inc. price-eps-surprise | Juniper Networks, Inc. Quote

Zacks Rank: Juniper currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Perion Network Ltd. (PERI - Free Report) is slated to release third-quarter 2021 results on Oct 26. It has an Earnings ESP of +8.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming Corporation (BYD - Free Report) is scheduled to release third-quarter 2021 results on Oct 26. The company has an Earnings ESP of +2.17% and a Zacks Rank #2.

Acadia Realty Trust (AKR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #2. The company is set to report third-quarter 2021 results on Oct 26.