A telecommunication equipment vendor, Juniper Networks Inc. (NYSE:
JNPR) is scheduled to report its second quarter FY 2011 earnings on July
22, 2011. In the last four quarters ended March 2011, the company's
reported EPS exceeded analysts' consensus forecast for quarters ended
June 2010 and December 2010 by margins of 3.40 percent and 5.40 percent,
respectively. For quarters ended September 2010 and March 2011, the
reported EPS met Wall Street's consensus estimate of $0.32 per share.
Juniper Networks designs, develops and sells products and services
that together provide its customers with network infrastructure that
creates responsive environments for accelerating the deployment of
services and applications over a single network. The company's
operations are organized into two segments: infrastructure and service
layer technologies. Juniper has a market share of 30 percent, and stands
second in the industry behind Cisco Systems Inc. (Nasdaq: CSCO), which
has a market share of 60 percent.
For Q1 FY 2011
- Net revenue increased by 21 percent to$1.1 billion, from $912 million in the first quarter FY 2010.
- Net income was $130 million, down 20 percent, compared with net income of $163 million in the comparable quarter last year.
- Earnings were $0.24 per diluted share, compared with earnings of $0.31 per diluted share in the first quarter FY 2010.
- On a non-GAAP basis, net income increased 19 percent to $178 million, or $0.32 per share.
- Operating margin decreased to 16.1 percent, from 17.6 percent in the first quarter FY 2010.
For FY 2010
For full year 2010, revenue increased 23 percent to $4.093 billion
from $3.315 billion in FY 2009. Net income for the year was $618.4
million, or $1.15 per diluted share, compared with net income of $117
million, or $0.22 per diluted share, reported for FY 2009.
Company's Outlook
Juniper expects second quarter revenue to be in the range of $1.13
billion to $1.18 billion, representing an increase of 16 percent to 21
percent. Non-GAAP gross margin is expected to remain in its targeted
range of between 66 percent and 68 percent. Net income for the second
quarter is expected to be in the range of $0.31 per share and $0.34 per
share.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of
$0.32 to a high of $0.36 per share, compared with a consensus estimate
of $0.30 per share to $0.34 per share in the year ago quarter. For this
quarter, analysts' revenue estimates range from a low of $1.11 billion
to a high of $1.18 billion, compared with a consensus estimate of
$978.30 million to $1.16 billion in the same quarter a year ago. For the
second quarter, the consensus EPS forecast has remained unchanged for
the last 60 days at $0.34 per share.
In the last 52-weeks, Juniper's stock has been trading in the range
of $22.25 to $45.01. The stock was trading higher by 1.38 percent to
$30.86 on June 29. On June 14, analysts at RBC Capital markets
downgraded the stock rating to Sector Perform from Outperform.
