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Juniper (JNPR) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

Juniper Networks, Inc. JNPR is scheduled to report fourth-quarter 2019 results on Jan 27, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 4.4%. Juniper topped the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, the positive surprise being 7.9%, on average.

The computer network equipment maker is likely to have witnessed business challenges at some of its largest service provider customers, lingering impacts from its sales force transformation and macro-economic uncertainty.

Despite short-term hindrances, it is performing well in a dynamic environment and expects to see improved momentum with its cloud customers in 2020. The company has made significant changes to its go-to-market structure to better align its sales strategies with each of its core customer verticals.

Let’s find out how things have shaped up prior to the announcement.

Factors at Play

Juniper augmented Telefonica UK’s network capabilities for the rollout of 5G service across the country. The company advanced its global partner program, Juniper Partner Advantage 2020, in a way that helps fuel its business. With this enhancement, the company is supporting its partners drive growth through additional business and customer expansion while simplifying operations.

During the quarter under review, Juniper collaborated with Russia’s largest digital services provider, Rostelecom, to reinforce large-scale modernization of communication transport solutions. Further, it was selected by Orange Poland, a leading Polish telecommunication provider, to amplify the resilience and automation capabilities of its IP network core.

The company reached a significant milestone with the deployment of 400 Gigabit per second Ethernet network between Denver and Chicago. It provided equipment and services to meet the supercomputing requirements in SC19. The move leveraged Juniper’s first fixed-configuration core router, PTX10003 Packet Transport Router. All these developments are likely to have benefited the company’s performance.

The Zacks Consensus Estimate for revenues from the Product segment (comprising Routing, Switching and Security), which accounts for the lion’s share of total revenues, is pegged at $788 million, indicating a 1.4% growth from the year-ago reported figure. Revenues from the Service segment are anticipated to decline to $402 million from $404 million.

Aggregate revenues for the December quarter are estimated to slightly rise to $1,190 million from $1,181 million recorded in the year-earlier quarter. Adjusted earnings per share are pegged at 58 cents, indicating a decline from earnings of 59 cents reported a year ago.

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 +0.58%.

Juniper Networks, Inc. Price and EPS Surprise

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 #4 (Sell).

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:

W. R. Berkley Corporation WRB is slated to release quarterly results on Jan 28. The company has an Earnings ESP of +2.03% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SEI Investments Company SEIC is scheduled to release results on Jan 29. It has an Earnings ESP of +2.35% and a Zacks Rank #1.  

Murphy Oil Corporation MUR has an Earnings ESP of +7.76% and sports a Zacks Rank of 1. The company is set to report results on Jan 30.     

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Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
SEI Investments Company (SEIC) : Free Stock Analysis Report
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Murphy Oil Corporation (MUR) : Free Stock Analysis Report
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