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Will Solid Revenue Growth Aid Juniper's (JNPR) Q4 Earnings?

Juniper Networks, Inc. JNPR is scheduled to report fourth-quarter 2022 results on Jan 31, after market close. In the last reported quarter, the company beat adjusted earnings by 8 cents. Juniper is expected to report high year-over-year revenues as the company’s AI-driven network solutions are in high demand.

Factors at Play

In the to-be-reported quarter, Walmart Arkansas Music Pavilion (AMP) selected Juniper’s AI-driven networking solutions to ensure seamless, reliable wireless connectivity. The company’s AI-driven radio resource management and self-healing features will ensure efficient troubleshooting and network optimization. Along with Mist Cloud and Mist AI, Juniper’s Wireless Access point, EX4400 Multigigabite switches, are used to streamline and simplify the network operations and ensure a top-notch experience for end users. This is likely to be reflected in fourth-quarter results.

In the fourth quarter, Seagate, the industry's leading mass data storage company, chose Juniper's AI-driven SDWAN solutions to cut costs.  The solutions are likely to improve the performance of low latency applications, making it perfect for high bandwidth operations like data transfer and minimizing operational costs with increased efficiency. Trust of big players like Seagate in Juniper’s AI-Driven Enterprise portfolio is likely to have had a positive impact on fourth-quarter earnings.

During the fourth quarter, Juniper’s Apstra networking software was selected by Indonet for automation and modernization of its digital infrastructure. Apstra has provided Indonet — a highly-acclaimed internet service provider in Indonesia — with an estimated 20% in cost-savings efficiency through managed automated network deployment and monitoring. Juniper was also selected by Virtual-Q to modernize network infrastructure. These are likely to have translated into incremental revenues in the quarter.

During the fourth quarter, Juniper announced that it would work to upgrade and modernize Canadian Tire Corporation’s IT infrastructure to streamline customer’s experience from beginning to end across the latter’s 1,700 retail stores and gas outlets. Juniper’s software-based approach to manage a wide area network will improve security, strengthen connectivity and reduce complexity by quickening troubleshooting process. Juniper was also selected as the preferred technology partner for Deutsche Telekom. Such collaborations will likely have a favorable effect on the fourth-quarter performance.

For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,482 million, which indicates growth from the year-ago quarter’s reported figure of $1,300 million. The consensus estimate for adjusted earnings per share stands at 65 cents, suggesting growth from 56 cents reported in the prior year.

Earnings Whispers

Our proven model predicts 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. This is perfectly the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.89%, with the former pegged at 66 cents and the latter at 65 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 and EPS Surprise

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


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

Other Stocks to Consider

Here are some other 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:

Telephone and Data Systems, Inc. TDS is set to release quarterly numbers on Feb 16. It has an Earnings ESP of +2.63% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Zillow Group, Inc. ZG is +53.85% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.

The Earnings ESP for Cambium Networks Corporation CMBM is +9.27% and it carries a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Feb 16.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report

Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report

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Cambium Networks Corporation (CMBM) : Free Stock Analysis Report

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