NEW YORK (TheStreet) -- Shares of Juniper Networks (JNPR) - Get Juniper Networks, Inc. (JNPR) Report are up 3.53% to $22.60 in after-hours trading today after the company reported preliminary fourth quarter and fiscal year 2014 financial results that beat analysts' estimates.
Juniper reported non-GAAP net income was $179.3 million, or 41 cents per diluted share on revenue of $1.1 billion for the fourth quarter. Analysts expected earnings of 31 cents on revenue of $1.06 billion.
The California-based network company also reported fiscal year 2014 earnings of $1.45 on revenue of $4.63 billion, surpassing earnings estimates of $1.36 on revenue of $4.58 billion.
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The company sees the long-term demand drivers for networking as "healthy" and is confident in its innovation pipeline.
However, Juniper continues to expect the overall revenue environment to be challenging throughout the first half of 2015, and as a result, remains "cautious" on its revenue planning assumptions.
Accordingly, Juniper guided a non-GAAP net income range between 28 cents and 32 cents in a revenue range between $1.02 billion and $1.06 billion for Q1 2015.
Separately, TheStreet Ratings team rates JUNIPER NETWORKS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JUNIPER NETWORKS INC (JNPR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JUNIPER NETWORKS INC has improved earnings per share by 21.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JUNIPER NETWORKS INC increased its bottom line by earning $0.86 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $0.86).
- Although JNPR's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for JUNIPER NETWORKS INC is rather high; currently it is at 68.22%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, JNPR's net profit margin of 9.20% significantly trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: JNPR Ratings Report