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Juniper Networks Soars After Earnings and Revenue Beats - Stocks in the News

Zacks Research Staff

Juniper Networks (JNPR) is a multinational corporation that provides Internet infrastructure solutions specifically geared towards Internet and telecommunications service providers. Based in Sunnyvale, California, Juniper’s products include routers, switches, and network security and management software.

Recently Juniper has been able to benefit from growing demand for data center virtualization and cloud computing. Additionally, the company’s recent expansion into the software defined network (SDN) will help establish it as a player in the cloud-based market. SDN solutions and cloud infrastructure help businesses lower networking costs.

While the company has certainly made some positive strides with its product line, costs associated with its recent restructuring may play a factor in today’s earnings report. Juniper could also be hampered by competition from the much larger Cisco Systems ( CSCO).

There hasn’t been much activity with Juniper’s estimates heading into the day. We haven’t seen any earnings revisions in the last 90 days, and this is evidenced by a Zacks ESP of 0.00%, as the Most Accurate estimate and Zacks Consensus Estimate are equal. There were no surprises from Juniper last quarter, as the company matched the Zacks Consensus Estimate of $0.22.

Currently, Juniper has a Zacks Rank #3 (Hold), although we could see movement in the rank based on today’s earnings announcement. We’ve highlighted some of the key figures from the just-released report below:

Earnings: Juniper beat the Zacks Consensus Estimate of $0.31, reporting an EPS of $0.41.

Revenue: Juniper posted Q2 revenues of $1.22 billion, which beat our consensus estimate of $1.11 billion.

Key Stats to Note: Total cash, cash equivalents, and investments as of June 30, 2015 were $3,076 million, compared to $3,451 million as of March 31, 2015, and $3,960 million as of June 30, 2014.

Stock Price: Shares of JNPR gained about 1% over the course of the day, but the stock has soared in after-hours trading and is now up over 10%.

Make sure to check back later for our full write up on Juniper’s earnings report!

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