Juniper Networks Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Juniper Networks (NYSE:JNPR) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Juniper Networks offers products and services that facilitate the deployment of services and applications over the Internet.

Juniper Networks Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 15 cents per share, a decline of 28.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 16 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 15 cents during the last month. Analysts are projecting profit to rise by 44.8% compared to last year’s 48 cents.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 14 cents per share against a mean estimate of net income of 10 cents, and the quarter before, the company exceeded forecasts by 3 cents with profit of 11 cents versus a mean estimate of net income of 8 cents.

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A Look Back: In the third quarter, profit fell 79.9% to $16.8 million (3 cents a share) from $83.7 million (16 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 1.1% to $1.12 billion from $1.11 billion.

Here’s how Juniper Networks traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

jnpr

Stock Price Performance: Between November 20, 2012 and January 18, 2013, the stock price had risen $5.33 (33%), from $16.15 to $21.48. The stock price saw one of its best stretches over the last year between November 20, 2012 and November 29, 2012, when shares rose for seven straight days, increasing 11.6% (+$1.87) over that span. It saw one of its worst periods between July 3, 2012 and July 17, 2012 when shares fell for 10 straight days, dropping 11.6% (-$1.87) over that span.

Analyst Ratings: There are mostly holds on the stock with 19 of 28 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 5.8% in the fourth quarter of the last fiscal year, 6.3% in the first quarter and 4.2% in the second quarter before climbing in the third quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 66.7% over the past four quarters.

Wall St. Revenue Expectations: Analysts predict a rise of 0.9% in revenue from the year-earlier quarter to $1.13 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.63 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.91 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.8% to $3.94 billion while liabilities rose by 3.3% to $1.5 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)