Shares of networking solutions provider Juniper Networks Inc. JNPR gained more than 6% in yesterday’s after-hours trading session following the better-than-expected first-quarter 2015 results. The company’s quarterly revenues beat the Zacks Consensus Estimate, while adjusted earnings (excluding one-time items but including stock-based compensation) came in line with the same.
Juniper’s adjusted earnings per share of 22 cents matched the Zacks Consensus Estimate but increased 15.8% from the year-ago quarter figure of 19 cents. However, on a GAAP basis, earnings came in at 19 cents as against 22 cents in the year-ago quarter.
Juniper Networks Inc. - Earnings Surprise | FindTheCompany
Revenues
Juniper’s revenues of $1.067 billion surpassed the Zacks Consensus Estimate of $1.044 billion and came ahead of its guidance range of $1.020 to $1.060 billion. The company reveled that the better-than-expected top line was mainly driven by better demand from its Cloud, Cable and European Service Providers. However, on a year-over-year basis, total revenue was down 8.8% from the year-ago quarter.
Product revenues (72% of first-quarter revenues) were down 12.8% year over year. However, services revenues increased 3.1% on a year-over-year basis and contributed the remaining 28%.
Juniper’s revenues from Routing products came in at $504.8 million, down 8.2% year over year. Also, revenues from Switching products declined 13.3% from the year-ago quarter to $166.5 million. Moreover, Security products revenues decreased 30.1% year over year to $92.8 million.
Geographically, revenues from the Americas and Asia Pacific were down 13.6% and 9.5%, respectively, on a year-over-year basis. However, revenues from EMEA grew 2.7% year over year to $303.8 million.
Operating Results
Juniper’s gross margin came in at 62.1% versus 61.5% in the year-ago period, primarily due to a favorable product and geography mix. Moreover, adjusted operating margin improved from 11.4% to 13.9% year over year due to stringent cost controls and improved gross margin.
The company reported adjusted net income (including stock-based compensation but excluding amortization, restructuring, goodwill impairment, acquisition-related and other expenses on a proportionate tax basis) of $96.5 million, which decreased from $86.4 million reported a year ago.
Balance Sheet
Juniper exited the first quarter with total cash, cash equivalents and investments of $2.21 billion compared with $1.97 billion at the end of previous quarter. Long-term debt was $1.65 billion.