Juniper Networks Inc. (JNPR) shares traded as high as $25.09 pre-market on Tuesday morning. Headquartered in Sunnyvale, CA, Juniper manufactures networking equipment including routers and security products, and employs nearly 10,000 people. JNPR shares are up nearly 9% year to date 2014, having managed to outperform the broader market.
Earnings Report
Juniper is scheduled to report earnings after the close of Tuesday’s trading session, with analysts projecting $0.38 EPS on $1.22 billion of revenue. Juniper has also beat estimates on its past 2 earnings reports, and many expect to hear more positive news today’s call. JNPR bulls cite new product development and partnerships with major players such as AT&T (T) as key growth drivers, not to mention the rapid expansion of their core router business.
Historical Action
Historically, JNPR shares offer traders wishing to trade an earnings catalyst with a fair degree of movement – 6.7% on average over the past 8 quarters. The shares have risen on earnings 2 of the past 4 quarters, and 4 of the past 8. This Friday’s July Weekly JNPR 24.5 straddle is priced around $1.25, implying a below average move of 5.1%.
Trade Idea
One possible trade set-up would be to buy the JNPR July Weekly 25-26 Call Spread for $0.25. While a compelling bearish argument could be made based on technicals, I believe Juniper has a strong fundamental outlook and investors will hear more good news on the afternoon call.
= = =
Investors and traders who wish to learn more about trading weekly options for earnings and other catalyst events can attend KeeneOnMarket.com’s exclusive TraderPlanet webinar: How To Add Weeklys to Your Trading Arsenal.