Juniper's Not-So-Rosy Q4: Fool by Numbers

On Jan. 25, Juniper Networks (Nasdaq: JNPR  ) released Q4 and full fiscal 2005 earnings for the period ending Dec. 31, 2005.

  • Net income included roughly $14 million in charges related to acquisitions, restructuring, and redemption of convertible notes. Without them, Juniper earned $0.20 per stub, in line with Street projections.
  • Sales, however, disappointed. Not surprisingly, investors took their objections out on the shares, which fell by almost 21%.
  • The outlook isn't much better. According to Reuters, Juniper expects to book between $565 million and $575 million in revenue and $0.19 per stub after special charges. Analysts, however, had projected $586 million and $0.20 a share.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$579,180

$575,464

$430,053

+33.8%

Net Profit

--

$105,530

$66,001

+59.9%

EPS

$0.20

$0.17

$0.11

+54.5%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

Change

Gross Margin

68.38%

70.37%

-1.99%

Op. Margin

20.23%

20.98%

-0.75%

Net Margin

18.34%

15.35%

+2.99%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash + ST Invest.

$1,428,765

$1,117,841

+27.8%

Prepaid Exp.

$120,784

$108,586

+11.2%

Accounts Rec.

$268,907

$187,306

+43.6%



Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$460,159

$481,440

-4.4%

Accounts Pay.

$165,172

$113,890

+45%



Cash Flow Highlights

Q4 2005

Q4 2004

% Change

Cash From Ops

$642,943

$439,448

+46.3%

Capital Expend.

$98,192

$63,185

+55.4%

Free Cash Flow

$544,751

$376,263

+44.8%



Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Microsoft is a Motley Fool Inside Value selection.Sign upfor a free 30-day trial today and get access to all the picks helping advisor Philip Durell beat the market by more than 3% as of this writing. Orsubscribeorrenewtoday and we'll throw inStocks 2006, which features our analysts' best picks for the year ahead. All you have to lose is the prospect of a richer portfolio.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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