Juniper Networks, Inc. (NYSE:JNPR): All eyes are anticipated to be watching for the earnings release after the closing bell on January 26, 2012. Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure to create environments for the deployment of services and applications over a single network. The company was founded in 1996 and is headquartered in Sunnyvale, California.
52 Week High: $45.01
52 Week Low: $16.67
Book Value: $13.20
Float Short: 1.74%
According to EDGAR Online, on average, 14 analysts are expecting the same in earnings as the last quarter of $0.28. The reporting quarter's estimated mean earnings are $0.28 per share. Analyst estimates range between $0.19 and $0.29 per share.
The current trailing twelve months P/E ratio is 22.3. The forward P/E ratio is 22.01. In the last month, the stock has increased in price 10.37%, and moving in price -34.30% from one year ago. With a gain compared to stocks in general, the stock is better than the overall stock market. When comparing to the S&P 500, the year up to date change is 7.70%.
Juniper has a mixed record of beating estimates, but expectations are relatively low. After this summer's beat-down the stock has yet to fully recover and appears to be very comfortable in a channel between $18 and $25. Like most of the stocks I have reviewed, Juniper has been doing well since the start of the year, but this will be the real test. With a PE mulitple above my comfort level of about 20, Juniper better have guidance to warrant the premium for growth. If I already owned Juniper I would be looking to take some off the table with a hedge by selling covered calls for at least some of the shares. Juniper may hit it out of the park, but the 200 day moving average will still be a difficult test to overcome.
The company has rising revenue year-over-year of $4.09 billion for 2010 vs. $3.32 billion for 2009. The bottom line has rising earnings year-over-year of $618.40 million for 2010 vs. $117.00 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $767.58 million for 2010 vs. $310.70 million for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.
Riverbed Technology, Inc. (NASDAQ:RVBD) is anticipated to report earnings after the closing bell on January 26, 2012.
Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology performance across wide area networks (WANs) in the United States and internationally. The company was founded in 2002 and is headquartered in San Francisco, California.
52 Week High: $44.70
52 Week Low: $18.33
Book Value: $4.47
Float Short: 3.08%
According to EDGAR Online, on average, 11 analysts are expecting the same in earnings as the last quarter of $0.24. Investors will be looking to see a number north of $0.24 per share, based on the earnings estimates.
Relative to the earnings, investors have not been as aggressive accumulating shares, as the current trailing twelve months P/E ratio is 71.6, while the forward P/E ratio is now 42.85. It will be interesting to see if pricing is currently at a discount, or if the market has been correct to price in lower growth expectations.
With a PE multipe in the nosebleed section, Riverbed better maintain the guidance looked for. With the stock currently testing the 200 day moving average and the shorting moving averages finally headed back up, maybe Riverbed can keep it going. Like Juniper, but even more so I would be wanting to hedge my position going into earnings. Unless you're using a crystal ball or have insider knowledge, it's too much of a crap shoot for me.
In the last month, the stock has increased in price 17.58%, and -19.22% from one year ago. It is clear to see the stock is performing much better than the overall market, with a relative double digit gain. When comparing to the S&P 500, the year to date difference is 16.48%.
Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $551.89 million for 2010 vs. $394.15 million for 2009. The bottom line has rising earnings year-over-year of $34.16 million for 2010 vs. $7.09 million for 2009. The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $56.25 million for 2010 vs. $10.34 million for 2009. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.
I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.