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S&P 500 (NYSE:SPY) component Juniper Networks (NYSE:JNPR) posted lower net income in the second quarter compared with a year-earlier period. 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 $58 million (11 cents per share) vs. $115.6 million (21 cents per share) a year earlier. This is a decline of 49.8% from the year-earlier quarter.
Revenue: Fell 4.2% to $1.07 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Juniper Networks reported adjusted net income of 19 cents per share. By that measure, the company beat the mean zack’s estimate of 8 cents per share. It beat the average revenue estimate of $1.05 billion.
Quoting Management: “Juniper’s second quarter results delivered sequential top line growth as a result of our focus on execution,” said Kevin Johnson, CEO of Juniper Networks. “New products continued to gain traction in the marketplace with key customer wins across our portfolio. In a challenging macro environment, we remain focused on our operational execution, delivering great products, driving revenue and managing our cost base.
The second quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 2.2 percentage points to 62.2% from the year-earlier quarter. In that span, margins have contracted an average of 3.5 percentage points per quarter on a year-over-year basis.
Revenue has been on the decline for three quarters in a row. In the first quarter, revenue declined 6.3% to $1.03 billion while the figure fell 5.8% in the fourth quarter of the last fiscal year from the year earlier.
Net income has dropped 47.2% 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 Zack’s estimate for the third quarter has fallen from 20 cents per share to 13 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average Zack’s estimate has moved down from 68 cents a share to 49 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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