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JNPR Set to Report Q3 Results: Will Revenue Decline Impact Earnings?

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Juniper Networks, Inc. (JNPR - Free Report) is set to release its third-quarter 2024 results on Oct. 31, after the closing bell. The leading provider of networking solutions and communication devices is expected to report lower revenues year over year, owing to demand softness in several business segments.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

However, the company’s focus on expanding its secure, efficient and user-friendly network management solution suite will likely have strengthened prospects in the AI-driven networking market. Healthy demand for data center solutions, hardware maintenance and professional services is a tailwind.

Factors at Play

During the quarter, Telxius, a leading global connectivity provider, has opted to leverage Juniper Converged Optical Routing Architecture and PTX Series Packet Transport Routers to upgrade its network infrastructure. This development is likely to have supported the top line.

In the quarter under review, JNPR announced the launch of a comprehensive multi-vendor lab under its Ops4AI initiatives that efficiently validates end-to-end AI data center solutions and enhances AI workload management with an open and versatile infrastructure. It introduced AP47 access points and high-power EX series switches that enable enterprises to take advantage of Wi-Fi 7's full potential. In addition, it has also unveiled AI native cloud services and intent-based networking in its data center networking portfolio to enhance network visibility and improve user experience.

Juniper also formed a partnership with Quantum Bridge Technologies, an industry leader in Distributed Symmetric Key Exchange for post-quantum cryptography networks, to accelerate the development of the industry's first quantum-safe communication solution. These initiatives are expected to have a positive impact on Juniper’s upcoming results.

However, the company is witnessing declining demand trends in several segments. Macroeconomic headwinds are affecting customer spending decisions. The company is facing intensifying competition in each of its served markets. These factors are likely to have hindered top-line growth during the quarter.

Overall Expectations

Zacks Consensus for revenues from the Cloud vertical is pegged at $265.62 million, implying a year-over-year decline from $269.6 million in the year-ago quarter. For the Service Provider segment, Zacks Consensus Estimate stands at $383.78 million, suggesting a decrease from $418.8 million year over year. Revenues for the Enterprise business are pegged at $631.19 million, implying a year-over-year reduction from $709.4 million.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.27 billion, indicating a decline from the year-ago quarter’s reported figure of $1.4 billion. The consensus estimate for adjusted earnings per share stands at 44 cents, suggesting a decrease from 60 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 44 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 and EPS Surprise

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

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

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 PayPal Holdings, Inc. (PYPL - Free Report) is +1.94%, and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct. 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Qualcomm Technologies, Inc. (QCOM - Free Report) is +0.48%, and it sports a Zacks Rank of 1. The company is scheduled to report its quarterly numbers on Nov. 6.

The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.96%, and it carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 7.

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