Earnings Previews: Juniper, Akamai, Infinera, Equinix

July 22nd, 2013 by · Leave a Comment

This week will see a deluge of Q2 earnings announcements, including an interesting cross-section of the most dynamic internet infrastructure stocks. Here's a quick look at four of them: Juniper reports on Tuesday, followed by Akamai, Infinera, and Equinix on Wednesday.

Juniper didn't impress with its outlook last quarter, but has seen its stock price rebound in the past three months.  Analysts are expecting them to hit their numbers for Q2, but as always the real focus will be on their guidance for the third quarter and any indications that the overall environment for vendors is strengthening (or weakening).

$ in millions Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13
(guidance)
Platform Systems 765.7 810.2 828.5 866.4 809.2
Software Systems 266.8 263.6 289.8 274.4 250.0
Revenue 1032.5  1073.8 1118.3 1140.8 1059.2 1070-1100
Non-GAAP EPS 0.16 0.19 0.22 0.28 0.24 0.22-0.26
Non-GAAP Operating Margin % 12.0%  15% 16.9% 18.2% 15.7% 17.5%

Akamai, on the other hand, is coming off a strong first quarter, boosted in part by a slower than expected winding down of revenue from a large video customer.  The market seems to be optimistic about their chances to come in on the higher end of guidance, but it looks to me as if there are enough headwinds to not raise expectations.

$ in millions Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13
(guidance)
Revenue 319.4  331.3 345.3 377.9 368.0 368-378
COS 102.6  107.5  110.0 111.9 120.4
SG&A+R&D 140.4  139.4  149.7 164.4 140.0
Gross Margin % 67.8% 67.6%  68.1% 70.4% 67.2%
Adj.  EPS 0.41 0.43 0.43 0.54 0.51 0.44-0.46

Infinera is looking to ride the 100G wave further, although things never happen as quickly as the market would like with the adoption of new technology.   Analysts don't quite yet believe in the higher guidance they gave last quarter, projecting them to come in a bit below the midpoint.  However, I suspect Infinera really does have legs this year.

$ in millions Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Guidance
Revenue 104.7  93.5 112.2 128.1 124.6 Q2: 130-140, 2013: ~20% growth
Operating Expenses 60.3 58.7 59.7 61.8 57.6 Q2: 53-54, 2013: 205-210
Non-GAAP EPS (0.10)  (0.16) (0.07) (0.05) (0.06) Q2: (0.04)-0.01
Non-GAAP Gross Margin % 40%  37% 39% 36% 36% Q2: 37-39%, 2013: 38-40%

And Equinix is looking to regain some momentum after a relatively uninspiring first quarter followed by the IRS taking some air out of the REIT balloon.  I wouldn't expect anything huge, but it's generally been a bad idea to bet against these guys more than one quarter in a row.

$ in millions
for continuing operations
Q2/12 Q3/12 Q4/12 Q1/13 Guidance
- Recurring 433.8 462.8 481.7 495.3
- Non-recurring 23.5 25.9 24.8 24.2
Revenues 457.2 488.7 506.5 519.8 Q2: 530-534, 2013:>2200
Cash COS 142.0 158.0 159.0 162.8
Cash SG&A 97.8 102.4 108.3 113.2 Q2:120-124, 2013:490-510
Adjusted EBITDA 217.5 228.3  239.3 243.5 Q2:240-244, 2013:1010
Earnings Per Share 0.73 0.58 0.68 0.71
Ongoing Capex 37.5 37.6 43.5 34.0 Q2:45, 2013:165
Expansion Capex 158.9 174.5 166.9 41.7 Q2:125-135, 2013:385-485

Time will tell, as it always does.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Content Distribution · Datacenter · Financials · Telecom Equipment

Discuss this Post


Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.





  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar