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Juniper (JNPR) Q4 Earnings: What's in the Cards this Time?

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Juniper Networks, Inc.JNPR is set to release fourth-quarter 2016 earnings on Jan 26. In the last quarter, the company reported a positive earnings surprise of 14.63%. We note that the company has delivered positive earnings surprises in three of the last four quarters, with an average positive earnings surprise of 3.09%.

We also note that shares of Juniper have outperformed the Zacks Wireless Equipment industry over the last one year. While the industry lost 6%, the stock gained 4.7%.

Let's see how things are shaping up for this announcement.

Factors to Consider

Juniper is a leading provider of networking solutions and communication devices. The company's frequent product launches, cost reduction initiatives and improving execution are encouraging. Additionally, the company's expansion into the software defined network segment is likely to strengthen its position in the networking space and have a positive impact on results in the to-be reported quarter.

Moreover, contract wins from the likes of National Credit Union Federation of Korea MASMOVIL, one of the largest mobile operators based in Spain, indicated increasing adoption of the company's technology.

Additionally, the launch of carrier-grade unified security and routing for AWS Marketplace for enterprises is also positive. The new product will make it easier for enterprises to switch to the cloud. However, an uncertain global macro environment and potentially weak investment patterns among customers are the major headwinds. Moreover, stiff competition and ongoing consolidation in the telecom market might dampen results in the to-be reported quarter.

Earnings Whispers?

Our proven model does not conclusively show that Juniper is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.

Zacks ESP: Juniper's Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 52 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Juniper carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Juniper Networks Inc. Price and EPS Surprise

Juniper Networks Inc. Price and EPS Surprise | Juniper Networks Inc. Quote

Stocks to Consider

Here are some companies that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Seagate Technology plc STX with an Earnings ESP of +1.87% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Corning Incorporated GLW with an Earnings ESP of +2.27% and a Zacks Rank #2.

Microsoft Corporation MSFT with an Earnings ESP of +1.28% and a Zacks Rank #2.

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Seagate Technology PLC (STX): Free Stock Analysis Report

Juniper Networks Inc. (JNPR): Free Stock Analysis Report

Microsoft Corp. (MSFT): Free Stock Analysis Report

Corning Inc. (GLW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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