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Will Juniper (JNPR) Beat Estimates this Earnings Season?

Juniper Networks, Inc.JNPR is set to report third-quarter 2015 results on Oct 22. Last quarter, it posted a positive earnings surprise of 32.26%.

Let us see how things are shaping up for this announcement.

Factors to Consider

Juniper is capitalizing on the growing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Moreover, the company's product launches, cost reduction initiatives and improving execution should aid third-quarter results.

Juniper's expansion into the software defined network (SDN) segment should strengthen its position in the networking space. The increasing complexity in cloud infrastructure has raised the demand for SDN solutions which make the infrastructure more flexible and cut costs. It is expected that the low-cost proposition will lead to quicker adoption of the SDN technology, in turn, ensuring growth for Juniper.

However, charges related to the company's restructuring initiatives are expected to impact profitability in the second quarter. Competition from Cisco CSCO and F5 Networks, and delays in large projects remain the concerns.

Earnings Whispers

Our proven model does not conclusively show that Juniper will beat earnings this quarter. That 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: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 43 cents. Hence, the difference is 0.00%.

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

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

Stocks to Consider

Here are some companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Boyd Gaming Corp. BYD , with an Earnings ESP of +20.00% and a Zacks Rank #1.

Fiserv Inc. FISV , with an Earnings ESP of +3.09% and a Zacks Rank #2.

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FISERV INC (FISV): Free Stock Analysis Report

CISCO SYSTEMS (CSCO): Free Stock Analysis Report

JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

BOYD GAMING CP (BYD): 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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