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Can Top-Line Improvement Aid Juniper (JNPR) Q3 Earnings?

Juniper Networks, Inc. JNPR is scheduled to report third-quarter 2022 results on Oct 25, after the market closes. In the last reported quarter, the company missed adjusted earnings by 3 cents. The Sunnyvale, CA-based network solutions provider is expected to have recorded year-over-year higher revenues, driven by healthy demand trends.

Factors at Play

In the to-be-reported quarter, Juniper is expected to have benefited from the launch of Network as a Service (NaaS) enhancements to its leading AIOps platform that facilitate the deployment and management of wired, wireless and secure SD-WAN network services via Juniper MSP and reseller partners. The combination of microservices cloud, open APIs and Mist AI with new NaaS capabilities is likely to bring more flexibility, agility and insight to Juniper partners. This is likely to be reflected in the upcoming results.

During the quarter, the company inked an agreement with Tata Play Fiber for an undisclosed amount to augment the latter’s network capabilities to cater to the exponential growth in customers and related data demands. The improvement in infrastructure facilities is expected to reduce the complexity of the network while increasing operational flexibility and efficiency with a better economy of scale. In addition, Tata Play Fiber is likely to leverage Juniper's Broadband Network Gateway subscriber management solution to simplify the delivery of bundled services. This is likely to have generated incremental revenues in the quarter.

The company was also selected to facilitate the digital transformation initiative of the Royal Society for Prevention of Cruelty to Animals, New South Wales (“RSPCA NSW”). Juniper’s AI-driven wired and wireless portfolio, which includes the deployment of a range of networking solutions, has enabled RSPCA NSW to provide a strong digital experience for its prospective pet parents and staff. This is likely to have aided top-line growth in the quarter.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,351 million, which indicates growth from the year-ago quarter’s reported figure of $1,189 million. The consensus estimate for adjusted earnings per share stands at 50 cents, suggesting growth from 46 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 +3.54%, with the former pegged at 52 cents and the latter at 50 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:

Sensata Technologies Holding plc ST is set to release quarterly numbers on Oct 25. It has an Earnings ESP of +2.92% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.

The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.

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

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