Juniper Sets The Tone With Q2 Earnings

Router maker Juniper Networks (NASDAQ:JNPR, news, filings) reported earnings yesterday after the bell, as the Q2 earnings season begins in earnest.  Revenues of $978.3M was just above the range the company guided to back in April, and beat analyst expectations which weren’t much different than guidance.  Likewise, non-GAAP earnings per share of $0.30 topped guidance of $0.27-0.29 and the street’s expectations of the top of that range.  

Going forward, the company forecast non-GAAP earnings of $0.30-0.32, inline with published expectations.  However, analyst comments seem to suggest that unofficially the street was looking for something more substantial – maybe a nice juicy Tier 1 contract or something – that would reassure them that the marketplace will be friendly in the second half.

But I suspect this quarter’s earnings at Juniper reflect the sector overall – meeting guidance, improving performance, but not willing to over-promise.  Carriers are spending more to keep up with internet traffic, so the trends still look pretty good – but nobody’s going to hold Wall Street’s hand and tell them it’s in the bag.

Juniper also announced yesterday that it intends to file a shelf registration that will enable them to sell ‘from time to time’ as much as $1.5B in the form of stock, preferred stock, debt securities, warrants, or depositary shares.  While it’s slightly odd to me to announce this now rather than just file the thing, it’s clear that Juniper simply wants to be able to move rapidly should certain opportunities or situations arise.

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Categories: Financials · Telecom Equipment