Both Juniper and Infinera Beat Guidance

Both Infinera (NASDAQ:INFN, news, filings) and Juniper Networks (NASDAQ:JNPR, news, filings) reported earnings after the bell.  Both beat their guidance, and both exceeded published analyst estimates by a bit, but both stocks had been up in the past couple months in anticipation of such an event and thus beating expectations was a formidable task.  That being said, after hours responses tend to be unreliable.

Infinera checked in with revenues of $95.8M, a bit above both guidance of $92-94M and analyst projections.  Margins also continued to climb with revenue, with non-GAAP gross margins rising to 41%.  Adjusted net loss of $0.07 was also better than expected, expectations had been at about a dime.   Amongst other highlights, their customer list grew by five to reach 74 and now includes one of Japan’s top 3 providers.  Unexpectedly, their largest customer in Q1 was again Level 3 Communications (NYSE:LVLT, news, filings) at 22%, but next quarter is not expected to exceed 10% – which emphasizes the lumpiness of this business.   Despite that, Infinera expects Q2 revenue to rise again to $99-101M, adjusted loss per share of $0.05-0.06, and non-GAAP gross margins of 41-42%.

Routing specialist Juniper reported revenues of $912.6M and non-GAAP earnings per share of $0.27, each number slightly better than both guidance and the analyst consensus.  The revenue number included a positive $25M shift due to implementation of new accounting standards for revenue recognition, which may be behind some of the weakness in the stock after hours if it was unanticipated (anyone know?).  Non-GAAP operating margin was 23.2%, down slightly sequentially.

Regarding Juniper’s guidance for the second quarter, revenues were projected at around $930-970M with non-GAAP earnings per share of $0.27-0.29, which basically encompasses what analysts had projected.  The initial response from the market after hours was negative, implying that expectations were somewhat higher than anyone was willing to put on paper.  After all, the stock has been rising steadily since February.

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Categories: Financials · Telecom Equipment