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Sep 30, 2020
Juniper Networks Q3 2020 Earnings Report
Juniper Networks' financial performance exceeded expectations due to strong execution and better than anticipated demand.
Key Takeaways
Juniper Networks reported preliminary Q3 2020 financial results with net revenues of $1,138.2 million, a slight year-over-year increase and a 5% sequential increase. GAAP net income was $145.4 million, resulting in diluted earnings per share of $0.43. The company's Q4 guidance includes the impact of the acquisition of Netrounds but excludes any impact from the pending acquisition of 128 Technology.
Net revenues were $1,138.2 million, up slightly year-over-year.
GAAP operating margin was 11.0%.
Non-GAAP operating margin was 17.1%.
GAAP net income was $145.4 million, resulting in diluted earnings per share of $0.43.
Juniper Networks
Juniper Networks
Juniper Networks Revenue by Segment
Juniper Networks Revenue by Geographic Location
Revenue by Segment
Cloud Revenue
CapyFin.comService Provider Revenue
CapyFin.comEnterprise Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Juniper Networks provided guidance for the quarter ending December 31, 2020. Revenue is expected to be approximately $1,190 million, plus or minus $50 million. Non-GAAP net income per share is expected to be approximately $0.53, plus or minus $0.05.
Positive Outlook
- Sequential revenue and earnings growth is expected.
- Confidence driven by strong backlog and healthy momentum.
- Sequential growth in Enterprise and Cloud verticals is anticipated.
- Slight sequential decline in Service Provider is expected.
- Sequential volume-driven improvements in non-GAAP gross margin are forecasted.
Challenges Ahead
- Logistics and other supply chain-related costs due to the effects of the ongoing pandemic are expected to remain elevated but slightly lower than Q3 levels.
- Fourth quarter non-GAAP operating expense is expected to be modestly up from Q3 levels.
- Non-GAAP Other Income & Expense, or OI&E, is expected to be an expense of approximately $15 million on a net basis.
- The expected negative impact in OI&E is due to the lower interest rate environment, capital return initiatives, and recently announced acquisitions.
- Non-GAAP tax rate will be approximately 19.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income