Jul. 23, 2015, 7:33 PM
- Juniper (NYSE:JNPR) has made fresh 52-week highs after beating Q2 estimates with the help of a slight Y/Y increase in Service Provider revenue (contrasts with an 8% Q1 drop). In addition, Q3 guidance is for revenue of $1.23B (+/- $20M) and EPS of $0.50-$0.54, above a consensus of $1.16B and $0.46.
- Business line/segment performance: Routing revenue -3% to $602.4M; switching -5% to $190.2M; security -4% to $107.1M. Service provider revenue up fractionally to $835.3M; enterprise -3% to $386.9M.
- Financials: $600M was spent on buybacks, and another $500M has been added to Juniper's authorization, bringing its size back up to $675M. Thanks to job cuts, R&D, sales/marketing, and G&A spend respectively fell by $3.9M, $25.6M, and $4.3M Y/Y to $251.6M, $232.4M, and $56.3M. Juniper ended Q2 with $3.08B in cash/investments, and $1.95B in debt.
- Archrival Cisco (NASDAQ:CSCO) is following Juniper higher AH. Cisco rose 1.7% in regular trading after announcing it's selling its set-top unit (has been seeing major sales declines/share loss) to Technicolor for $600M. The company remains a major provider of infrastructure hardware and software - for example, the cloud-based Videoscape platform - to pay-TV providers.
- Juniper's Q2 results, PR
Jul. 23, 2015, 5:43 PM
Jul. 23, 2015, 4:22 PM
- Juniper Networks (NYSE:JNPR): Q2 EPS of $0.53 beats by $0.13.
- Revenue of $1.22B (-0.8% Y/Y) beats by $110M.
- Shares +10.2%.
Jul. 22, 2015, 5:35 PM
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Jun. 23, 2015, 10:54 AM
- Juniper (JNPR -0.1%) is partnering with carrier/enterprise Wi-Fi hardware and software vendor Ruckus (RKUS +0.7%) to offer enterprise, government, and education clients solutions that pair Juniper's EX Series Ethernet switches with Ruckus' ZoneFlex Wi-Fi access points and SmartZone Wi-Fi management software.
- The companies also plan to integrate their security and hardware provisioning tools, and products that lower the number of logical network devices that need to be managed by IT admins.
- The alliance comes shortly after HP (a Juniper Ethernet rival) acquired Ruckus rival Aruba Networks. Last year, Juniper announced a partnership with Aruba that bore a strong resemblance to the Ruckus deal. For now, Juniper says Aruba remains a partner.
- Dan Ferguson, the CEO of a Juniper channel partner: "Juniper teaming with Ruckus says Juniper is moving away from the Aruba relationship ... Juniper needs to team up with somebody in the wireless space -- they can't go to market with a big hole in their portfolio." Mark Robinson, the president of another channel partner: "It solidifies what everyone was thinking, which was that the whole Juniper-Aruba [relationship] was not going anywhere ... Ruckus has always been perceived positively in the marketplace. I think they're an innovative company."
Jun. 18, 2015, 8:18 AM
Jun. 1, 2015, 10:11 AM
- Believing the bull case for the company is based on "faulty assumptions" that ignore major changes in carrier router usage, MKM's Michael Genovese has downgraded Juniper (NYSE:JNPR) to Sell, while keeping its target at $22.
- Specifically, Genovese argues tier-1 carriers appear committed to ""a multi-step network transition that includes fewer Routing nodes (more Optical nodes) and aggressive Router pricing demands near-term," and that they eventually want to "deploy more multi-purpose, standardized hardware and to open-up the network software to be more multi-vendor and programmable" (i.e. adopt SDN and NFV). Juniper client AT&T is among the carriers embracing the latter trend, via its Domain 2.0 initiative.
- Genovese also believes 2H15 consensus estimates - they assume rebounding telecom capex - are too high, and that Juniper is unlikely to be acquired by a larger vendor. Speculation about an Ericsson bid has been running high since the Nokia/Alcatel-Lucent deal.
- Shares remain up 21% YTD. They trade for 16x 2015E EPS.
May 27, 2015, 4:38 AM
- As the telecom-network industry consolidates, Ericsson (NASDAQ:ERIC) is now more open to a bigger M&A deal in order to remain competitive in the market, Bloomberg reports.
- "I see no reason why we, given the right preconditions, would exclude a larger deal," Ericsson Chairman Leif Johansson said in an interview this month. "But as you know, there aren't that many left."
- CEO Hans Vestberg plans to gather with his top managers in June to discuss strategy, and a key area is what the company can do to counter Nokia's recent $16.6B acquisition of Alcatel-Lucent.
- Possible targets: Ciena (NYSE:CIEN), Infinera (NASDAQ:INFN) and Juniper (NYSE:JNPR)
May 11, 2015, 3:04 PM
- Screening for the 10 S&P 500 companies which cut their float by the most in 2014, Wallace Witkowski finds just half have seen their stock prices outperform the average over past two years. Six out of ten saw an improvement in adjusted EPS; five out of ten an improvement in EPS.
- ADT Corp. (NYSE:ADT) reduced its share count by 18% - the most in the group - and has seen its stock price fall 16% over the last two years. Next is Cameron International (NYSE:CAM), which cut its float by 16% and saw its stock decline 19%. Mosaic (NYSE:MOS) has bought back 12% of its stock, but is down 30%.
- Success stories include CF Industries (NYSE:CF), cutting stock outstanding by 14% and posting a 62% gain in price. Juniper Networks (NYSE:JNPR) has bought back 10% of the float and is sporting a 57% gain.
- All ten of the companies increased their debt load alongside the buybacks.
- ETFs: PKW, SYLD, FYLD, IPKW, SPYB
Apr. 24, 2015, 9:17 AM
Apr. 23, 2015, 4:59 PM
- In addition to beating Q1 estimates, Juniper (NYSE:JNPR) is guiding for Q2 revenue of $1.09B-$1.12B and EPS of $0.38-$0.42, almost entirely above a consensus of $1.09B and $0.38.
- $400M was spent on buybacks in Q1. Juniper has promised to spend $1B over the whole of 1H15.
- Shares have risen to $25.50 AH. The 52-week high is $25.70.
- Q1 results, PR
Apr. 23, 2015, 4:08 PM
- Juniper Networks (NYSE:JNPR): Q1 EPS of $0.32 beats by $0.01.
- Revenue of $1.07B (-8.5% Y/Y) beats by $30M.
- Shares +2.1%.
Apr. 22, 2015, 5:35 PM
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Apr. 18, 2015, 8:04 PM
- Nokia (NYSE:NOK) and Alcatel-Lucent's (NYSE:ALU) planned merger could unravel Nokia's R&D partnership/reseller deal with Juniper (NYSE:JNPR). Juniper, which has partnered with Nokia on solutions that pair the former's routers with the latter's base stations and mobile core network gear, counts Alcatel as its second-biggest rival (after Cisco) in the carrier router market, and also squares off against the company in other markets such as carrier SDN software.
- Ruckus (NYSE:RKUS) is another Nokia partner that could be in the crosshairs: The company competes against Alcatel in carrier Wi-Fi hardware, and has a reseller deal with Nokia that goes back to 2012. The deal was recently expanded to cover Wi-Fi/4G small cell systems.
- At the same time, the merger has fueled speculation one or more rivals could respond with acquisitions of their own. A potential acquisition of Juniper by mobile infrastructure giant Ericsson (NASDAQ:ERIC) has especially been the subject of much talk.
- Ericsson is also viewed as a potential suitor for optical networking hardware vendors/fellow Alcatel rivals Ciena and Infinera. Ruckus has been seen as a potential M&A target for a long time. However, it currently competes against Ericsson, which bought Wi-Fi hardware vendor BelAir Networks in 2012.
- RF backhaul hardware maker DragonWave (NASDAQ:DRWI) could also lose business thanks to the merger; it bought Nokia's RF backhaul business in 2012. and maintains a reseller deal. However, H.C. Wainwright recently downplayed those concerns, arguing Alcatel's RF backhaul systems are expensive and clunky.
- Juniper and Ericsson report earnings on April 23, and Ruckus on April 30.
Apr. 7, 2015, 6:16 PM
- Though Juniper's (NYSE:JNPR) switches and routers often rely on home-grown ASICs, the company's new "compute-integrated" QFX5100-AA data center switch runs on an Intel (NASDAQ:INTC) Xeon server CPU. Meanwhile, a complementary "packet flow accelerator" module features an Altera (NASDAQ:ALTR) FPGA that can be programmed to run custom apps.
- Juniper claims the switch and module, which are aimed at financial services firms demanding high throughput and low latency, can eliminate the need for a separate server to handle data processing, along with the related network hops. Private Maxeler Technologies provides a programming environment for the FPGA.
- The switch and module begin shipping in Q3. Like Juniper's recently-launched QFX10000 data center spine switches, they take aim at fast-growing Arista (NYSE:ANET), whose low-latency switches have gained a strong following with HFT trading desks and other financial firms. Arista is no stranger to using x86 CPUs or Altera FPGAs in its hardware.
- Juniper rose 3.2% today; Arista rose 0.6%. Juniper's Q1 report arrives on April 23.
- An aside: Juniper's switch highlights the product synergies that could stem from an Intel acquisition of Altera; deal talks were reported two weeks ago.
Mar. 26, 2015, 2:05 PM
- MKM's Michael Genovese is pleased with Infinera's (NASDAQ:INFN) recent unveiling of two new photonic integrated circuits (PICs) that will go into optical transport systems aimed at 100G metro networks. "PICs are the source of the company's competitive advantage in long haul, and we expect the new more flexible and granular PICs to form the basis of a compelling Metro 100G aggregation/Telecom product later this year."
- Infinera asserts its new PICs offer more flexibility by allowing capacity to be "divided at a granular optical level with each slice capable of being routed in a different direction as it exits the line card or the system housing it." One PIC (the ePIC-500) delivers 500Gbps of capacity at network hub locations, and the other (the oPIC-100) 100Gbps at network spoke locations.
- Infinera claims tests showed "an estimated average reduction of 28 percent in modules, 31 percent in power and 45 percent in bandwidth inefficiencies as compared to conventional, commercial off the shelf technologies that deliver single-wavelength or super-channel solutions for 100G, 200G or 400G."
- Genovese sees Infinera's addressable market expanding to ~$20B in 2018 from ~$5B in 2014 as it "competes in end-to-end Optical Transport including Metro and [data center infrastructure]," and as its systems handle traffic forwarding features traditionally handled by routers - the latter could pose challenges for Cisco (NASDAQ:CSCO) and Juniper (NYSE:JNPR).
- Infinera is once more within a dollar of a 52-week high of $19.48.
Juniper Networks, Inc. designs, develops and sells products and services that together provide customers with network infrastructure that creates responsive and trusted environments for accelerating the deployment of services and applications over a single network. The company offers a broad... More
Industry: Networking & Communication Devices
Country: United States
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