What To Expect From Juniper’s Q1 Results

by Trefis Team
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Juniper Networks (NYSE:JNPR) is scheduled to report its Q1 earnings on April 25. The company’s Q4 disappointed on account of continued weakness in the cloud and service provider business, which weighed on revenues. As we look forward to Q1, we will be hoping for positive news on the company’s cloud and service provider business, as detailed below.

We currently have a price estimate of $25 per share for Juniper, which is marginally lower than the current market price. Our interactive dashboard on Juniper’s Q1 Expectations outlines our forecasts and estimates for the company. You can modify any of the key drivers to visualize the impact of changes on its valuation, and see more Trefis technology company data here.

How Did Juniper Perform In Q4? 

  • Juniper’s Q4 revenue declined to $1.18 billion (-5% y-o-y), which was below management’s guided range.
  • The decline was due to a fall in cloud revenue to $237.5 million (-8% y-o-y) and a fall in service provider revenue to $516 million (-15% y-o-y)
  • The company’s enterprise business showed strength, with revenues growing to $427 million (+14% y-o-y)
  • Juniper’s management guided for a Q1 revenue range of $950-$1,010 million (-12.2% to -6.7% decline on a y-o-y basis)

What Will We Be Watching In Q1? 

  • Impact from U.S. – China trade dispute: The company’s management indicated during Q4 that the trade war would negatively impact its business.
  • Commentary around cloud and service provider recovery: Juniper’s management has expressed confidence that growth is likely to return in the second half of 2019. Furthermore, management mentioned the lack of any competitive displacement with port growth remaining encouraging.

Considering the relative improvement in the macroeconomic and geopolitical sentiment versus Q4, we expect the company to post revenues of just over $1 billion for Q1 (-7.5% y-o-y decline).

Don’t agree with our forecast? Create your own price forecast for Juniper by changing the base inputs (blue dots) on our interactive dashboard.

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