Comments From Juniper and Emerson Bring More Support for These Holdings

We are using the lull between tariff-related developments and corporate earnings to collect comments from other companies that have recently reported their quarterly results and shared their outlook for what’s ahead. 

Indeed, what we saw in results and comments from Juniper Networks JNPR and Emerson Electric EMR bring additional layers of support for our positions in two portfolio holdings.

Juniper Networks

While Juniper Networks is in the process of being acquired by Hewlett Packard Enterprise HPE, its reported December quarter brings more support for some of our holdings. While Juniper’s revenue for the quarter rose in the low single digits on both a year-over-year and sequential basis, its order book supports the expected upturn in communications infrastructure and enterprise networking markets:

"We saw another quarter of strong demand during the fourth quarter, with total product orders growing double-digits sequentially and more than 40% year-over-year… we saw double-digit order growth in our enterprise and service provider verticals complement another quarter of triple-digit year-over-year growth in our cloud vertical, where we continue to benefit from these customers’ AI networking initiatives."

Those comments bode well for Marvell’s MRVL upcoming earnings report and support our thinking that NXP Semiconductors NXPI is losing market share is more right than wrong.

Emerson Electric

Earnings conference call comments from Emerson Electric build on the ones we shared yesterday from Jacobs Solutions J, bringing another layer of affirmation for our position in Eaton ETN.

"… positive trends across the power landscape as global project investment continues to increase in response to rising electricity demand forecasts and grid complexity.

"Installed renewable capacity globally is expected to triple by 2030, taxing an aging grid developed for the one way flow of electrons. It is estimated that over $3 trillion of grid infrastructure investment is required by 2030 to support electrification and renewable energy. Utilities are also making large investments for incremental generating capacity to a mix of greenfield, brownfield and modernization projects."

While we have some room to nibble further on ETN shares, we’ll want to clear any additional tariff hiccups before making our next move. While we bide our time, we’ll take another look at the technical setup, and share an updated look with members tomorrow. 

At the time of publication, TheStreet Pro Portfolio was long MRVL and ETN.