Loading...
•
Dec 31, 2020
Juniper Networks Q4 2020 Earnings Report
Juniper Networks reported preliminary financial results for Q4 2020, showing a slight increase in revenue and a decrease in GAAP operating margin.
Key Takeaways
Juniper Networks reported a 1% year-over-year increase in revenue for Q4 2020, driven by better-than-expected demand. The company exceeded revenue and non-GAAP EPS targets, with strong backlog and momentum across core industry verticals. Strategic investments in technology and go-to-market organization are expected to drive long-term growth and improved profitability.
Net revenues increased by 1% year-over-year to $1,222.6 million.
GAAP operating margin decreased to 8.0% from 14.8% in Q4 2019.
Non-GAAP operating margin decreased to 19.3% from 20.4% in Q4 2019.
GAAP net income decreased by 82% year-over-year to $30.8 million, resulting in diluted earnings per share of $0.09.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Juniper Networks anticipates revenue of approximately $1,055 million, plus or minus $50 million, for the quarter ending March 31, 2021. The guidance assumes stable exchange rates and includes a non-GAAP EPS of approximately $0.25, plus or minus $0.05.
Positive Outlook
- Expected revenue is up 6% year-over-year at the mid-point of guidance.
- Non-GAAP gross margin is expected to be approximately 59.0%, plus or minus 1%.
- The company expects to see less than $10 million of revenue from recent acquisitions.
- A quarterly cash dividend of $0.20 per share will be paid on March 22, 2021.
- Strong backlog and healthy momentum across each of core industry verticals.
Challenges Ahead
- Non-GAAP operating expenses are expected to increase sequentially, primarily due to the inclusion of approximately $20 million of operating expenses related to recent acquisitions.
- Non-GAAP EPS guidance includes the dilutive impact of the recent acquisitions.
- COVID-related costs are expected to impact non-GAAP gross margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...