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Juniper (JNPR) Beats Q3 Earnings Estimates on Record Revenues
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Juniper Networks, Inc. (JNPR - Free Report) reported solid third-quarter 2022 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. The solid performance was driven by record revenues with double-digit year-over-year growth across all customer verticals and all customer solutions. Juniper expects this healthy growth momentum in the impending quarters as well, owing to robust demand trends.
Net Income
On a GAAP basis, net income in the third quarter improved to $121.5 million or 37 cents per share from $88.9 million or 27 cents per share in the prior-year quarter. The improvement was led by top-line growth with attractive opportunities across enterprise, cloud and service provider markets.
Non-GAAP net income was $190.8 million or 58 cents per share compared with $152 million or 46 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Juniper’s quarterly revenues increased to $1,414.6 million from $1,188.8 million in the prior-year quarter, led by strong demand across all customer verticals and all customer solutions. The top line beat the consensus estimate of $1,351 million.
Product revenues (contributing 68.4% to total revenues) grew 25.3% year over year to $967.5 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 31.6% to total revenues) increased 7.2% to $447.1 million, led by renewals and service attach rates.
By vertical, revenues in Cloud increased to $375.3 million from $303.3 million. Revenues in Service Provider increased to $523.1 million from $445.8 million in the year-ago quarter. Revenues in Enterprise improved to $516.2 million from $439.7 million.
By region, revenues declined to $320.4 million from $336.3 million in the year-ago quarter in Europe, the Middle East and Africa. Revenues in the Americas increased to $895.8 million from $664.8 million. In the Asia Pacific, revenues were up 5.7% to $198.4 million.
Other Details
Gross profit was $787.8 million compared with $692.2 million in the year-ago quarter. Total operating expenses increased to $638.5 million from $572.1 million. Operating income was $149.3 million compared with $120.1 million a year ago. Non-GAAP operating income was $243.7 million, up from $197.8 million, with respective margins of 17.2% and 16.6%.
Cash Flow & Liquidity
In the first nine months of 2022, Juniper used $22 million of cash in operating activities against a cash flow of $573.7 million in the year-ago period. As of Sep 30, 2022, the company had $830.9 million in cash and cash equivalents with $1,595.7 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 fourth quarter, the company expects revenues of $1,475 million (+/- $50 million). Non-GAAP gross margin is estimated to be 57% (+/- 1%). Non-GAAP operating expenses are expected to be $575 million (+/- $5 million). It anticipates non-GAAP operating margin to be about 18% at the mid-point of the revenue guidance. Non-GAAP net income is expected to be 64 cents per share (+/- 5 cents), assuming a share count of nearly 330 million. Non-GAAP tax rate is likely to be around 19%.
Sierra Wireless has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 229.9%, on average, in the trailing four quarters. Over the past year, the stock has gained 80.3%. Earnings estimates for the current year have moved up 4400% since October 2021. Sierra Wireless continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It has a long-term earnings growth expectation of 25% and delivered a stellar earnings surprise of 81.9%, on average, in the trailing four quarters.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas. InterDigital’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive.
Viasat, Inc. (VSAT - Free Report) , carrying a Zacks Rank #2, is another key pick. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, making it believe that mobile broadband will act as a profit churner.
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Juniper (JNPR) Beats Q3 Earnings Estimates on Record Revenues
Juniper Networks, Inc. (JNPR - Free Report) reported solid third-quarter 2022 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. The solid performance was driven by record revenues with double-digit year-over-year growth across all customer verticals and all customer solutions. Juniper expects this healthy growth momentum in the impending quarters as well, owing to robust demand trends.
Net Income
On a GAAP basis, net income in the third quarter improved to $121.5 million or 37 cents per share from $88.9 million or 27 cents per share in the prior-year quarter. The improvement was led by top-line growth with attractive opportunities across enterprise, cloud and service provider markets.
Non-GAAP net income was $190.8 million or 58 cents per share compared with $152 million or 46 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
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 $1,414.6 million from $1,188.8 million in the prior-year quarter, led by strong demand across all customer verticals and all customer solutions. The top line beat the consensus estimate of $1,351 million.
Product revenues (contributing 68.4% to total revenues) grew 25.3% year over year to $967.5 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 31.6% to total revenues) increased 7.2% to $447.1 million, led by renewals and service attach rates.
By vertical, revenues in Cloud increased to $375.3 million from $303.3 million. Revenues in Service Provider increased to $523.1 million from $445.8 million in the year-ago quarter. Revenues in Enterprise improved to $516.2 million from $439.7 million.
By region, revenues declined to $320.4 million from $336.3 million in the year-ago quarter in Europe, the Middle East and Africa. Revenues in the Americas increased to $895.8 million from $664.8 million. In the Asia Pacific, revenues were up 5.7% to $198.4 million.
Other Details
Gross profit was $787.8 million compared with $692.2 million in the year-ago quarter. Total operating expenses increased to $638.5 million from $572.1 million. Operating income was $149.3 million compared with $120.1 million a year ago. Non-GAAP operating income was $243.7 million, up from $197.8 million, with respective margins of 17.2% and 16.6%.
Cash Flow & Liquidity
In the first nine months of 2022, Juniper used $22 million of cash in operating activities against a cash flow of $573.7 million in the year-ago period. As of Sep 30, 2022, the company had $830.9 million in cash and cash equivalents with $1,595.7 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 fourth quarter, the company expects revenues of $1,475 million (+/- $50 million). Non-GAAP gross margin is estimated to be 57% (+/- 1%). Non-GAAP operating expenses are expected to be $575 million (+/- $5 million). It anticipates non-GAAP operating margin to be about 18% at the mid-point of the revenue guidance. Non-GAAP net income is expected to be 64 cents per share (+/- 5 cents), assuming a share count of nearly 330 million. Non-GAAP tax rate is likely to be around 19%.
Zacks Rank & Other Stocks to Consider
Juniper currently has a Zacks Rank #2 (Buy).
Another top-ranked stock in the industry is Sierra Wireless, Inc. , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sierra Wireless has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 229.9%, on average, in the trailing four quarters. Over the past year, the stock has gained 80.3%. Earnings estimates for the current year have moved up 4400% since October 2021. Sierra Wireless continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It has a long-term earnings growth expectation of 25% and delivered a stellar earnings surprise of 81.9%, on average, in the trailing four quarters.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas. InterDigital’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive.
Viasat, Inc. (VSAT - Free Report) , carrying a Zacks Rank #2, is another key pick. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, making it believe that mobile broadband will act as a profit churner.