Yahoo Finance Juniper Networks' (NYSE:JNPR) Soft Earnings Don't Show The Whole Picture
Soft earnings didn't appear to concern Juniper Networks, Inc.'s (NYSE:JNPR) shareholders over the last week. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.
See our latest analysis for Juniper Networks
How Do Unusual Items Influence Profit?
Importantly, our data indicates that Juniper Networks' profit was reduced by US$132m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Juniper Networks to produce a higher profit next year, all else being equal.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On Juniper Networks' Profit Performance
Because unusual items detracted from Juniper Networks' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Juniper Networks' statutory profit actually understates its earnings potential! And the EPS is up 15% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about Juniper Networks as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Juniper Networks has 4 warning signs and it would be unwise to ignore them.
This note has only looked at a single factor that sheds light on the nature of Juniper Networks' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
