Much of the Street's 5% trim can be reasonably attributed to high hopes that were not surpassed. Even given the firm's robust recent growth, the stock's been valued at a pretty high premium when compared with peers such as market leader Cisco Systems
The Q3 numbers are enough to give even enthusiastic number-crunchers a cramp. Organic revenue growth vs. the NetScreen acquisition. GAAP-eps, non-GAAP eps. Which is it, man?
To start at the top, the $375 million in revenue was 118%. The firm's traditional infrastructure biz contributed a healthy 78% jump. There was an additional $90 million in sales owing to the firm's newer security products and services, which was about 10% less than internal targets -- and that's another one of the reasons stock watchers are giving for today's drop.
Earnings came to $0.09 per share, a big jump over $0.02 for last year's quarter. Of course, management would rather you look at the non-GAAP figure of $0.13, which excludes a slew of acquisition-related charges. There was plenty for shareholders to celebrate, including an increase in gross margin -- nearly 70% now -- and reduced costs. Net margin came to 13% -- a big improvement, but still not up to Cisco's 20% levels.
Given the solid news here, there are really two questions investors need to ask themselves regarding the valuation: First, can the growth continue? Are Verizon
Finally, what's in it for me? Keep in mind that Juniper is one of the most aggressive options-granters out there. The employee rewards accounted for in the footnotes of the latest 10Q would swing the reported $0.04 per share net profit for the first half of the year down to a $0.01 loss.
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