Juniper Networks beats Wall Street expectations for Q2, predicts higher supply costs for Q3

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Jonathan Greig

By

Jonathan Greig

| July 27, 2021 — 20:37 GMT (21:37 BST)

| Topic: Hardware

Networking equipment company Juniper Networks delivered better-than-expected second quarter financial results, reporting non-GAAP net income of $141.0 million, an increase of 21% year-over-year. 

The non-GAAP diluted earnings per share are $0.43 and net revenue is $1.17 billion, beating Wall Street’s expectations of $1.14 billion and $0.39 per share earnings. 

See also: Juniper Q1 and outlook top expectations even as global chip shortage weighs. 

According to a statement from the company, Juniper Networks planned to deliver a revenue of $1.14 billion for Q2, with non-GAAP earnings in the range of $0.33 to $0.43 per diluted share. The company forecasted revenue growth of 4% to 5% in spite of the chip shortage after bringing in a non-GAAP net income of $98.5 million in Q1. 

Juniper Networks shares are up 0.11% at $27.64 in after-hours trading.

Juniper Networks expects to deliver a revenue around $1.2 billion in Q3 and the non-GAAP net income per share will be approximately $0.46, plus or minus $0.05. 

In April, CFO Ken Miller said the company was “experiencing ongoing supply constraints which have resulted in extended lead times,” blaming the slowdown on the “worldwide shortage of semiconductors impacting many industries.”

The company included a similar message again, reminding investors that there is still a worldwide shortage of semiconductors impacting many industries, caused in part by the COVID-19 pandemic. 

They reiterated that there will be extended lead times and elevated costs that will “persist for at least the next few quarters.”

“While the situation is dynamic, at this point in time we believe we will have access to sufficient semiconductor supply to meet our full-year financial forecast,” the company said. 

“We expect our Q3’21 non-GAAP gross margin to decline sequentially due to higher costs related to supply constraints and an expected increase in service delivery costs, partially offset by benefits from higher revenue. We expect a modest sequential increase in Non-GAAP operating margin.”

Juniper Networks bought Apstra for an undisclosed sum in January and spent $450 million acquiring 128 Technology Inc. in October.

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Jonathan Greig

By

Jonathan Greig

| July 27, 2021 — 20:37 GMT (21:37 BST)

| Topic: Hardware