Juniper Networks Earnings: Exceeds Revenue Expectations

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S&P 500 (NYSE:SPY) component Juniper Networks (NYSE:JNPR) reported a lower net income in third quarter, missing analysts’ estimates. Juniper Networks offers products and services that facilitate the deployment of services and applications over the Internet.

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Juniper Networks Earnings Cheat Sheet

Results: Net income for the networking equipment industry fell to $16.8 million (3 cents per share) vs. $83.7 million (16 cents per share) a year earlier. This is a decline of 79.9% from the year-earlier quarter.

Revenue: Rose 1.1% to $1.12 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Juniper Networks beat the mean analyst estimate of 17 cents per share. It beat the average revenue estimate of $1.05 billion.

Quoting Management: “Juniper delivered top line revenue growth in the third quarter as we focus on excellence in execution throughout our business,” said Kevin Johnson, chief executive officer of Juniper Networks. “Our new products continue to gain traction in the marketplace, and we’re aligning our organization to sharpen our focus, enable agility and drive efficiency as we position for 2013.”

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 4.1 percentage points from the year-earlier quarter to 60.3%. In that span, margins have contracted an average of 3.7 percentage points per quarter on a year-over-year basis.

Last quarter’s year-over-year revenue increase ends a three-quarter streak of revenue declines. Revenue fell 4.2% in the second quarter, 6.3% in the first quarter and 5.8% in the fourth quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 11 cents versus a mean estimate of net income of 8 cents per share.

Net income has dropped 60.9% year-over-year on average across the last five quarters. Performance was hurt by an 87.5% decline in the first quarter from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 20 cents per share to 16 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 48 cents a share to 44 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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