Juniper Networks (JNPR) Tops Q1 EPS by 5c, Revenues Beat; Offers 2Q EPS/Revenue Guidance

Juniper Networks (NYSE: JNPR) reported Q1 EPS of $0.30, $0.05 better than the analyst estimate of $0.25. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.06 billion.

“We reported strong March quarter results. Revenue exceeded our expectations and we experienced better than expected product orders across each of our customer verticals,” said Juniper’s CEO, Rami Rahim. “Momentum is strong entering the June quarter and we are confident regarding our growth prospects. We believe the success we are seeing is a result of the deliberate actions we have taken to strengthen our product portfolio and go-to-market organization, both of which are enabling us to capitalize on attractive end-market opportunities now and in the future.”

“We delivered a strong financial performance during the March quarter as revenue, non-GAAP operating margin and non-GAAP earnings per share each exceeded our expectations,” said Juniper’s CFO, Ken Miller. “Backlog grew both sequentially and year-over-year and near-term visibility is strong. We believe the investments we have made are paying off and should enable us to not only return to sustained revenue growth, but also to deliver improved profitability over time.”

GUIDANCE:

Juniper Networks sees Q2 2021 EPS of $0.33-$0.43, versus the consensus of $0.37. Juniper Networks sees Q2 2021 revenue of $1.09-1.19 billion, versus the consensus of $1.13 billion.

These metrics are provided on a non-GAAP basis, except for revenue and share count. Non-GAAP earnings per share is on a fully diluted basis. The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.

There is a worldwide shortage of semiconductors impacting many industries. Similar to others, we are experiencing ongoing supply constraints which have resulted in extended lead times. We have invested to strengthen our supply chain and have increased inventory levels over the course of the last year. We continue to work closely with our suppliers to further enhance our resiliency and mitigate recent disruptions outside of our control. Despite these actions, we believe extended lead times will likely persist for the next few quarters. While the situation is dynamic, at this point in time, we believe we will have access to sufficient semiconductor supply to meet our full-year financial forecast.

At the mid-point of guidance, revenue is expected to be up 5% year-over-year. We expect to see sequential growth across our Cloud and Enterprise verticals while Service Provider is expected to remain approximately flat.

We expect our Q2'21 non-GAAP gross margin to benefit from higher revenue and incremental software mix, which should more than offset unfavorable product mix trends and potentially higher component costs related to supply constraints.

We expect non-GAAP operating expense to increase sequentially, primarily due to the investments we are making to take advantage of future market opportunities.

Our guidance for the quarter ending June 30, 2021 is as follows:

• Revenue will be approximately $1,140 million, plus or minus $50 million.
• Non-GAAP gross margin will be approximately 59.5%, plus or minus 1.0%.
• Non-GAAP operating expenses will be approximately $512 million, plus or minus $5 million.
• Non-GAAP operating margin will be approximately 14.6% at the mid-point of revenue guidance.
• Non-GAAP other income and expense (OI&E) will be an expense of approximately $12 million.
• Non-GAAP tax rate will be approximately 19.5%.
• Non-GAAP net income per share will be approximately $0.38, plus or minus $0.05. This assumes a share count of approximately 330 million.

For more detailed insight on guidance, please refer to the CFO Commentary that can be found on our website.

For earnings history and earnings-related data on Juniper Networks (JNPR) click here.

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