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Juniper's (JNPR) Q2 Earnings Miss Estimates, Revenues Beat

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Juniper Networks, Inc. (JNPR - Free Report) reported mixed second-quarter 2022 results, wherein the bottom line missed the Zacks Consensus Estimate, but the top line beat the same.

Net Income

On a GAAP basis, net income in the quarter improved to $113.4 million or 35 cents per share from $62 million or 19 cents per share in the prior-year quarter. The improvement was led by attractive opportunities across enterprise, cloud and service provider markets.

Non-GAAP net income was $136.4 million or 42 cents per share compared with $141 million or 43 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by 3 cents.
 

Juniper Networks, Inc. Price, Consensus and EPS Surprise

Juniper Networks, Inc. Price, Consensus and EPS Surprise

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

Revenues

Juniper’s quarterly revenues increased to $1,269.6 million from $1,172.3 million in the prior-year quarter. The top line beat the consensus estimate of $1,257 million.

Product revenues (contributing 66.1% to total revenues) grew 10.6% year over year to $839.8 million, reflecting healthy demand across the MX and PTX product families with the adoption of newer products and the automation software portfolio. Service revenues (contributing 36.3% to total revenues) increased 4% to $429.8 million, led by renewals and service attach rates.

By vertical, revenues in Cloud increased to $331 million from $320.6 million.
 
Revenues in Service Provider increased to $470.8 million from $443.7 million in the year-ago quarter. Revenues in Enterprise improved to $467.8 million from $408 million.

By region, revenues improved to $337.2 million from $323.9 million in the year-ago quarter in Europe, the Middle East and Africa. Revenues in the Americas increased to $748.6 million from $652.7 million. In the Asia Pacific, revenues were down 6.08% to $183.8 million.

Other Details

Gross profit was $694.1 million compared with $681.9 million in the year-ago quarter. Total operating expenses fell to $586.3 million from $596.2 million. Operating income was $107.8 million compared with $85.7 million a year ago. Non-GAAP operating income was $176.9 million, down from $184.8 million, with respective margins of 13.9% and 15.8%.

Cash Flow & Liquidity

During second-quarter 2022, Juniper used $73.8 million of cash from operating activities compared with $437 million in the year-ago quarter. As of Jun 30, 2022, the company had $721.8 million in cash and cash equivalents with $1,625.8 million of long-term debt.

Outlook

Due to the worldwide shortage of semiconductors, Juniper is experiencing supply headwinds resulting in extended lead times and higher logistics and component costs. These are expected to continue for the remainder of the year.

For the third quarter, the company expects revenues of $1,350 million (+/- $50 million). Non-GAAP gross margin is estimated to be 56.5% (+/- 1%). Non-GAAP operating expenses are expected to be $550 million (+/- $5 million). It anticipates non-GAAP operating margin to be about 15.8% at the mid-point of the revenue guidance. Non-GAAP net income is expected to be 50 cents per share (+/- 5 cents), assuming a share count of nearly 330 million. Non-GAAP tax rate is likely to be around 19.5%.

Zacks Rank & Stocks to Consider

Juniper currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Equinor ASA (EQNR - Free Report) , carrying a Zacks Rank #1, has a long-term earnings growth expectation of 49.4% and delivered an earnings surprise of 5.8%, on average, in the trailing four quarters. Over the past year, the stock has gained 82.1%. Earnings estimates for the current year have moved up 152.0% since July 2021. Equinor’s primary strategy is to capitalize on the renewable energy space and align its operations with the Paris Climate Agreement.

Turning Point Brands, Inc. (TPB - Free Report) , carrying a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 34.0% in the previous quarter and a stellar earnings surprise of 23.2%, on average, in the trailing four quarters. Earnings estimates for the current year have moved down by 11.6% since July 2021.Turning Point Brands is focused on manufacturing, marketing and distributing branded consumer products.

Liberty Energy Inc. (LBRT - Free Report) has a Zacks Rank #1. The Zacks Consensus Estimate for Liberty Energy’s current-year earnings has been revised 71.4% upward since July 2021.