Juniper Networks
JNPR
, a company that sells networking products, including routers, switches, network management software, network security products, and software-defined networking technology, is set to report its Q3 2023 earnings on October 26 reporting on a period that is likely to see the company post little topline and earnings growth on a year-over-year basis, due to a tough comparison with Q3 2022 which saw the company post record revenues amid easing supply constraints. Moreover, the macro environment is also likely to be less conducive to networking-related spending. We expect earnings to come in at about $0.55 per share, roughly in line with estimates although this would mark a 5% decline versus last year. We estimate that revenues will come in at about $1.4 billion, marking a decline of 2% year-over-year. See our analysis of Juniper Earnings Preview for a closer review of what to expect when the company reports results. So what are some of the trends that are likely to drive the company’s earnings for the quarter?
Amid the current financial backdrop, JNPR stock has seen little change, moving slightly from levels of $25 in early January 2021 to around $25 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. Overall, the performance of JNPR stock with respect to the index has been quite volatile. Returns for the stock were 59% in 2021, -11% in 2022, and -19% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 13% in 2023 – indicating an underperformance for the ticker in 2023.
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