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Will Top-Line Decline Impact Juniper's (JNPR) Q4 Earnings?
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Juniper Networks, Inc. (JNPR - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 30, after the closing bell. The company delivered an earnings surprise of 6.54%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 9.09%.
The leading provider of networking solutions and communication devices is expected to witness a top-line contraction year over year, owing to fierce competition, soft demand trends in several verticals and macroeconomic headwinds. However, solid demand for AI-driven network solutions and the introduction of cutting-edge AI-native features in its security portfolio are tailwinds.
Factors at Play
During the quarter, Juniper expanded its industry-leading Connected Security portfolio with a range of advanced features. These state-of-the-art features encompass AI-Predictive Threat Prevention, which enables rapid threat detection and enhances malware prevention capabilities. The strengthening of its portfolio is likely to have improved commercial prospects and will likely have a favorable impact on fourth-quarter results.
In the to-be-reported quarter, the City of Las Vegas opted to deploy Juniper’s Cloud Metro solution to establish a robust private 5G network citywide. The ACX7024 Cloud Metro routers and EX4300 switches will serve as the backbone for an advanced, open and adaptable network, seamlessly connecting devices from multiple end users and supporting third-party applications.
DNA, a leading telecommunications company in Finland, has opted to deploy Juniper Apstra Solution to automate data center infrastructure. Juniper also provided the QFX Series switches for DNA’s Telco cloud sites across Finland. Arirang TV, a Korea-based international English-language broadcasting network, has also selected Juniper QFX and EX series switches to modernize its infrastructure. Digital Edge, a prominent digital infrastructure provider in Asia, opted to deploy the complete suite of Juniper AI Driven Networking products to expedite the expansion of the digital ecosystem in the region. These developments are likely to have supported Juniper’s top line during the quarter.
In the quarter under review, Vodafone has leveraged Juniper wired and wireless access solutions to build an AI-powered SD-LAN (Software Defined Local Area Networking) managed service. The SD-LAN services integrated with Juniper's advanced AI for IT operations offer zero-touch provisioning that speeds up onboarding and enhances resiliency by swiftly detecting problems in the system. This is likely to have had a positive impact on Juniper’s fourth-quarter earnings.
However, soft demand for Cloud Ready Data Centers and Automated WAN solutions is likely to have a negative impact on net sales. Juniper faces severe competition in each of the markets it serves, especially from industry leader Cisco Systems. This is likely to have impacted its profitability.
Our estimate for revenues from the Cloud vertical is pegged at $262.6 million, implying a 31% year-over-year decline. For the Service Provider segment, our revenue estimate stands at $379.1 million. Our estimate for revenues from the Enterprise business is pegged at $758.6 million, implying 26.6% year-over-year growth.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,407 million, indicating a decline from the year-ago quarter’s reported figure of $1,449 million. The consensus estimate for adjusted earnings per share stands at 64 cents, suggesting a marginal decrease from 65 cents reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Juniper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 64 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Juniper currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it sports a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 21.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +0.51% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Image: Bigstock
Will Top-Line Decline Impact Juniper's (JNPR) Q4 Earnings?
Juniper Networks, Inc. (JNPR - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 30, after the closing bell. The company delivered an earnings surprise of 6.54%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 9.09%.
The leading provider of networking solutions and communication devices is expected to witness a top-line contraction year over year, owing to fierce competition, soft demand trends in several verticals and macroeconomic headwinds. However, solid demand for AI-driven network solutions and the introduction of cutting-edge AI-native features in its security portfolio are tailwinds.
Factors at Play
During the quarter, Juniper expanded its industry-leading Connected Security portfolio with a range of advanced features. These state-of-the-art features encompass AI-Predictive Threat Prevention, which enables rapid threat detection and enhances malware prevention capabilities. The strengthening of its portfolio is likely to have improved commercial prospects and will likely have a favorable impact on fourth-quarter results.
In the to-be-reported quarter, the City of Las Vegas opted to deploy Juniper’s Cloud Metro solution to establish a robust private 5G network citywide. The ACX7024 Cloud Metro routers and EX4300 switches will serve as the backbone for an advanced, open and adaptable network, seamlessly connecting devices from multiple end users and supporting third-party applications.
DNA, a leading telecommunications company in Finland, has opted to deploy Juniper Apstra Solution to automate data center infrastructure. Juniper also provided the QFX Series switches for DNA’s Telco cloud sites across Finland.
Arirang TV, a Korea-based international English-language broadcasting network, has also selected Juniper QFX and EX series switches to modernize its infrastructure. Digital Edge, a prominent digital infrastructure provider in Asia, opted to deploy the complete suite of Juniper AI Driven Networking products to expedite the expansion of the digital ecosystem in the region. These developments are likely to have supported Juniper’s top line during the quarter.
In the quarter under review, Vodafone has leveraged Juniper wired and wireless access solutions to build an AI-powered SD-LAN (Software Defined Local Area Networking) managed service. The SD-LAN services integrated with Juniper's advanced AI for IT operations offer zero-touch provisioning that speeds up onboarding and enhances resiliency by swiftly detecting problems in the system. This is likely to have had a positive impact on Juniper’s fourth-quarter earnings.
However, soft demand for Cloud Ready Data Centers and Automated WAN solutions is likely to have a negative impact on net sales. Juniper faces severe competition in each of the markets it serves, especially from industry leader Cisco Systems. This is likely to have impacted its profitability.
Our estimate for revenues from the Cloud vertical is pegged at $262.6 million, implying a 31% year-over-year decline. For the Service Provider segment, our revenue estimate stands at $379.1 million. Our estimate for revenues from the Enterprise business is pegged at $758.6 million, implying 26.6% year-over-year growth.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,407 million, indicating a decline from the year-ago quarter’s reported figure of $1,449 million. The consensus estimate for adjusted earnings per share stands at 64 cents, suggesting a marginal decrease from 65 cents reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Juniper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 64 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Juniper Networks, Inc. Price and EPS Surprise
Juniper Networks, Inc. price-eps-surprise | Juniper Networks, Inc. Quote
Zacks Rank: Juniper currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it sports a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 21.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +0.51% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.