Juniper Networks Q1 2020 Earnings Report
Key Takeaways
Juniper Networks reported preliminary financial results for Q1 2020, with net revenues of $998.0 million, flat year-over-year. GAAP net income was $20.4 million, resulting in diluted earnings per share of $0.06. The company's CEO noted that orders grew 10% year-over-year, but supply challenges impacted financial results.
Net revenues were $998.0 million, flat year-over-year.
GAAP operating margin was 3.9%, a decrease from 4.3% in Q1 2019.
GAAP net income was $20.4 million, a decrease of 34% year-over-year.
Non-GAAP diluted earnings per share was $0.23.
Juniper Networks
Juniper Networks
Juniper Networks Revenue by Segment
Juniper Networks Revenue by Geographic Location
Forward Guidance
Juniper Networks expects sequential revenue and non-GAAP earnings growth in Q2 2020, with revenue to be approximately $1,060 million, plus or minus $50 million, and non-GAAP net income per share to be approximately $0.34, plus or minus $0.05.
Positive Outlook
- Strong backlog
- Healthy momentum with Service Provider customers
- Healthy momentum with Cloud customers
- Non-GAAP gross margin expected to be essentially flat sequentially relative to Q1.
- Second quarter non-GAAP operating expense to decline sequentially.
Challenges Ahead
- Uncertainty in business due to the COVID-19 pandemic
- Increased uncertainty in certain segments of the Enterprise market
- Strategic insertion opportunities offsetting volume driven improvements in margin
- Increased logistics and other supply chain-related costs due to the COVID-19 pandemic
- Withdrawal of previously announced full-year 2020 commentary because we cannot predict the specific extent or duration of the impact of the COVID-19 outbreak on our financial results
Revenue & Expenses
Visualization of income flow from segment revenue to net income