Earnings Preview: Juniper Networks

| About: Juniper Networks (JNPR)

Juniper Networks (NYSE:JNPR) is expected to report Q4 earnings after the market close on Thursday, January 26, with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 28c for EPS and $1.13B for revenue, according to First Call. On Jan. 9, Juniper Networks lowered its Q4 adjusted EPS view to 26c-28c, and revenue view to $1.11B-$1.12B. The Q4 non-GAAP operating margin is expected to be below the company's prior outlook of 21%-23%, on weaker gross margins. In addition, the product book-to-bill was forecast to be approximately 1.0. The outlook was cut primarily due to weaker than expected router demand from service providers.

Analyst Views

Goldman expects Q4 revenue and non-GAAP EPS to be in-line with the company's pre-announcement. New product cycles such as QFabric and PTX may not drive revenue re-acceleration until 2H12, Goldman says. Goldman is modeling Q1 of FY12 revenue at $1.05B, below consensus at $1.10B and non-GAAP EPS at 23c, below consensus at 26c. Goldman see further margin compression in Q1 as competition intensifies. Consensus for 2012: $1.30 on $4.80B in revenue.