Yahoo Finance What's in Store for Juniper (JNPR) This Earnings Season?
Juniper Networks, Inc. JNPR is scheduled to report first-quarter 2020 results on Apr 28, after the closing bell. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
The Sunnyvale, CA-based computer network equipment maker is expected to have recorded slightly higher aggregate revenues on a year-over-year basis. This takes into account the business challenges at some of its largest service provider customers, persistent impacts from its sales force transformation and macro-economic uncertainty. The company has made significant changes to its go-to-market structure to better align its sales strategies with each of the core customer verticals.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.
Factors at Play
During the quarter under review, Juniper appointed Gordon Mackintosh as the new worldwide vice president of channel and virtual Sales. Gordon will drive the company’s go-to-market strategy for partners, aimed at delivering greater business outcomes through Juniper’s broad portfolio of AI-driven, cloud-based enterprise solutions and managed-services offerings.
Juniper’s Mist Systems expanded its collaboration and product integration activities with Inpixon, a leading indoor data company that specializes in delivering indoor intelligence. The companies are working to integrate Inpixon’s new Ultra-Wideband technology into Mist’s enterprise wireless infrastructure solutions. This is likely to have made an impact on Juniper’s first-quarter performance.
The company unveiled encrypted traffic analysis for Juniper Advanced Threat Prevention Cloud and SRX Series firewalls as well as the integration of SecIntel to the Mist platform for wireless access. Juniper delivers a complete offering to secure all traffic within an organization throughout all parts of the network.
Juniper was chosen by the Dr. D.Y. Patil Hospital & Research Centre in Pune, one of Asia’s leading medical institutes, for its network upgrade. Juniper’s Mist Systems launched the Mist Premium Analytics, a new service that offers enterprises a comprehensive network visibility and business insights platform to support the increasing demands of digital transformation projects. The company’s performance is expected to have benefited from these positive factors.
The Zacks Consensus Estimate for revenues in the Product segment (comprising Routing, Switching and Security), which accounts for the lion’s share of total revenues, is pegged at $644 million. The projection indicates growth of 4% from the year-ago quarter’s reported figure. Revenues in the Service segment are projected at $389 million, which suggests an increase from $383 million reported in the year-ago quarter.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,006 million that indicates a rise of 0.4% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 25 cents, which calls for a decline of 3.8% from the prior-year quarter’s recorded figure.
What Our Model Says
Our proven model doesn’t 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 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 -12.69% as the former is pegged at 22 cents and the latter at 25 cents.
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:
DexCom, Inc. DXCM is slated to release quarterly results on Apr 28. It has an Earnings ESP of +143.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Yum China Holdings, Inc. YUMC is scheduled to release results on Apr 28. The company has an Earnings ESP of +18.37% and carries a Zacks Rank #2.
Chemed Corporation CHE has an Earnings ESP of +0.42% and carries a Zacks Rank of 2. The company is set to report results on Apr 28.
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