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Will Top-Line Contraction Impede Juniper's (JNPR) Q2 Earnings?
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Juniper Networks, Inc. (JNPR - Free Report) is set to release its second-quarter 2024 results on Jul 25, after the closing bell. The leading provider of networking solutions and communication devices is expected to report lower revenues year over year, owing to weakness in several business segments. 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 hardware maintenance and professional services is a tailwind.
Factors at Play
During the quarter, Juniper introduced a series of enhancements to its AI-Native Networking Platform, aiming to elevate enterprise networking with advanced AI features. The company has introduced innovations to its WAN Assurance, Premium Analytics and Marvis Virtual Network Assistant products, enhancing their AI for networking capabilities to ensure secure and seamless SD-WAN and SASE experiences. Additionally, Juniper has launched a pioneering Routing Assurance product, integrating AI-native automation and insights into traditional edge routing topologies.
The company introduced AI-Native Dynamic Spectrum Capture, wired dynamic packet capture features to swiftly identify and root cause wireless interference issues and ensure more efficient troubleshooting. These advancements bolster Juniper’s position as the sole vendor offering a single AI-Native and cloud-native solution across all key networking domains, from campuses and branches to data centers and WAN links. These initiatives are expected to have a positive impact on Juniper’s upcoming results.
However, Juniper is experiencing demand softness across all its business segments. Macroeconomic headwinds are affecting customer spending decisions. Additionally, intensifying competition in each of its served markets is straining margins.
Overall Expectations
Our estimate for revenues from the Cloud vertical is pegged at $234.2 million, implying a 24.7% year-over-year decline. For the Service Provider segment, our revenue estimate stands at $380.5 million, suggesting a 19.7% decline year over year. Our estimate for revenues from the Enterprise business is pegged at $603.8 million, implying a 6.5% year-over-year reduction.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.24 billion, indicating a decline from the year-ago quarter’s reported figure of $1.43 billion. The consensus estimate for adjusted earnings per share stands at 44 cents, suggesting a decrease from 58 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.
Zacks Rank: Juniper currently has a Zacks Rank #2.
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 Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Pinterest (PINS - Free Report) is +7.14%, and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jul 30.
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Will Top-Line Contraction Impede Juniper's (JNPR) Q2 Earnings?
Juniper Networks, Inc. (JNPR - Free Report) is set to release its second-quarter 2024 results on Jul 25, after the closing bell. The leading provider of networking solutions and communication devices is expected to report lower revenues year over year, owing to weakness in several business segments. 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 hardware maintenance and professional services is a tailwind.
Factors at Play
During the quarter, Juniper introduced a series of enhancements to its AI-Native Networking Platform, aiming to elevate enterprise networking with advanced AI features. The company has introduced innovations to its WAN Assurance, Premium Analytics and Marvis Virtual Network Assistant products, enhancing their AI for networking capabilities to ensure secure and seamless SD-WAN and SASE experiences. Additionally, Juniper has launched a pioneering Routing Assurance product, integrating AI-native automation and insights into traditional edge routing topologies.
The company introduced AI-Native Dynamic Spectrum Capture, wired dynamic packet capture features to swiftly identify and root cause wireless interference issues and ensure more efficient troubleshooting. These advancements bolster Juniper’s position as the sole vendor offering a single AI-Native and cloud-native solution across all key networking domains, from campuses and branches to data centers and WAN links. These initiatives are expected to have a positive impact on Juniper’s upcoming results.
However, Juniper is experiencing demand softness across all its business segments. Macroeconomic headwinds are affecting customer spending decisions. Additionally, intensifying competition in each of its served markets is straining margins.
Overall Expectations
Our estimate for revenues from the Cloud vertical is pegged at $234.2 million, implying a 24.7% year-over-year decline. For the Service Provider segment, our revenue estimate stands at $380.5 million, suggesting a 19.7% decline year over year. Our estimate for revenues from the Enterprise business is pegged at $603.8 million, implying a 6.5% year-over-year reduction.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.24 billion, indicating a decline from the year-ago quarter’s reported figure of $1.43 billion. The consensus estimate for adjusted earnings per share stands at 44 cents, suggesting a decrease from 58 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-eps-surprise | Juniper Networks, Inc. Quote
Zacks Rank: Juniper currently has a Zacks Rank #2.
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:
Corning Incorporated (GLW - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +1.59% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Pinterest (PINS - Free Report) is +7.14%, and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jul 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.