We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Juniper (JNPR) Q4 Earnings Miss Estimates, Top Line Falls Y/Y
Read MoreHide Full Article
Juniper Networks, Inc. (JNPR - Free Report) reported soft fourth-quarter 2023 results, with both the bottom and top lines missing the respective Zacks Consensus Estimate. The company recorded lower revenues year over year, owing to sluggish demand for Cloud Ready Data Center and Automated WAN Solutions. However, increasing SaaS subscriptions and healthy demand for hardware maintenance and professional services partially cushioned the top line. The company’s Annual Recurring Revenue grew 30% year over year to $384 million.
Net Income
Net income, on a GAAP basis, was $124.3 million or 38 cents per share, down from $180.4 million or 55 cents per share in the prior-year quarter. A combination of higher operating expenses and lower net sales year over year affected the net income.
Non-GAAP net income stood at $196.9 million or 61 cents per share compared with $213.8 million or 65 cents per share in the year-ago quarter. The bottom line fell short of the Zacks Consensus Estimate by 3 cents.
In 2023, GAAP net income was $310.2 million or 95 cents per share, down from $471 million or $1.43 per share in 2022. Non-GAAP net income was $736.4 million or $2.26 per share compared with $642.6 million or $1.95 per share.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Juniper registered revenues of $1.36 billion, down from $1.44 billion in the year-ago quarter, primarily due to weakness in Cloud and Service Provider verticals. However, growth in the Enterprise vertical supported the top line during the quarter. The top line fell short of the Zacks Consensus Estimate of $1.4 billion.
In 2023, the company generated $5.56 billion in revenues, up from $5.3 billion reported in 2022.
Product revenues totaled $858.6 million compared with $988.3 million in the year-earlier quarter and fell short of our revenue estimate of $988.4 million. Net sales from Service were $506.2 million, up from $460.5 million in the year-ago quarter. The 10% year-over-year growth was driven by strong sales of hardware maintenance contracts and SaaS subscriptions. Net sales from Service surpassed our revenue estimate of $411.9 million.
By vertical, revenues from the Cloud business declined to $317.3 million from $380.3 million in the prior-year quarter but beat our estimate of $262.6 million. Declining demand trends for Cloud Ready Data Centers and AI-Driven Enterprise solutions affected the revenues of this vertical.
Service Provider contributed $400.2 million in revenues, down 15% year over year. However, net sales surpassed our estimate of $379.1 million. The downturn was primarily induced by weak demand for Automated WAN solutions.
Revenues from Enterprise recorded 8% growth year over year to $647.3 million. The upside was backed by healthy demand for AI-Driven Enterprise, hardware maintenance and professional services. Net sales missed our revenue estimate of $758.6 million. However, declining trends in Cloud Ready Data Center partially offset this positive trend.
By customer solution, Automated WAN solutions’ revenues aggregated $454.1 million, down 5% year over year. Net sales from AI-Driven Enterprise were $321.2 million, up 1% year over year. Cloud-Ready data centers contributed $180.8 million in revenues, down 30% year over year. Hardware Maintenance and Professional services generated $408.7 million in net sales, up from $391.6 million in the year-ago quarter.
By region, revenues from the Americas declined to $849.7 million from $857.4 million a year ago. Net sales from EMEA (Europe, Middle East and Africa) fell to $335.8 million from $378.5 million in the prior-year quarter. The downside in the EMEA region was induced by weak demand in the Service Provider and Cloud business. In the Asia-Pacific, revenues decreased 15.8% year over year to $179.3 million, owing to weakness in all verticals.
Other Details
Non-GAAP gross margin improved to 60.8% compared with 58.5% in the year-ago quarter. Favorable software revenue mix, easing of supply chain and other related costs boosted the gross margin.
Operating expenses, on a non-GAAP basis, rose to $579.8 million from $571.3 million, owing to higher headcount-related costs. Non-GAAP operating margin was 18.3%, marginally down from the year-ago quarter’s tally of 19.1%.
Cash Flow & Liquidity
In the fourth quarter of 2023, Juniper generated $9.1 million of cash from operating activities compared with $119.6 million in the year-earlier quarter. Delayed payment from federal taxes led to lower cash flow from operations. In 2023, the company registered an operating cash flow of $872.8 million, up from $97.6 million in 2022.
As of Dec 31, 2023, the company had $1.3 billion in cash and cash equivalents, with $1.61 billion of long-term debt compared to respective tallies of $1.23 billion and $1.6 billion in the prior-year period.
Zacks Rank & Other Stocks to Consider
Juniper currently sports a Zacks Rank #1 (Strong Buy)
Here are some other top-ranked stocks that investors may consider.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , sports a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 170.71%. In the last reported quarter, it delivered an earnings surprise of 78.99%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Juniper (JNPR) Q4 Earnings Miss Estimates, Top Line Falls Y/Y
Juniper Networks, Inc. (JNPR - Free Report) reported soft fourth-quarter 2023 results, with both the bottom and top lines missing the respective Zacks Consensus Estimate. The company recorded lower revenues year over year, owing to sluggish demand for Cloud Ready Data Center and Automated WAN Solutions. However, increasing SaaS subscriptions and healthy demand for hardware maintenance and professional services partially cushioned the top line. The company’s Annual Recurring Revenue grew 30% year over year to $384 million.
Net Income
Net income, on a GAAP basis, was $124.3 million or 38 cents per share, down from $180.4 million or 55 cents per share in the prior-year quarter. A combination of higher operating expenses and lower net sales year over year affected the net income.
Non-GAAP net income stood at $196.9 million or 61 cents per share compared with $213.8 million or 65 cents per share in the year-ago quarter. The bottom line fell short of the Zacks Consensus Estimate by 3 cents.
In 2023, GAAP net income was $310.2 million or 95 cents per share, down from $471 million or $1.43 per share in 2022. Non-GAAP net income was $736.4 million or $2.26 per share compared with $642.6 million or $1.95 per share.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Juniper Networks, Inc. price-consensus-eps-surprise-chart | Juniper Networks, Inc. Quote
Revenues
Juniper registered revenues of $1.36 billion, down from $1.44 billion in the year-ago quarter, primarily due to weakness in Cloud and Service Provider verticals. However, growth in the Enterprise vertical supported the top line during the quarter. The top line fell short of the Zacks Consensus Estimate of $1.4 billion.
In 2023, the company generated $5.56 billion in revenues, up from $5.3 billion reported in 2022.
Product revenues totaled $858.6 million compared with $988.3 million in the year-earlier quarter and fell short of our revenue estimate of $988.4 million. Net sales from Service were $506.2 million, up from $460.5 million in the year-ago quarter. The 10% year-over-year growth was driven by strong sales of hardware maintenance contracts and SaaS subscriptions. Net sales from Service surpassed our revenue estimate of $411.9 million.
By vertical, revenues from the Cloud business declined to $317.3 million from $380.3 million in the prior-year quarter but beat our estimate of $262.6 million. Declining demand trends for Cloud Ready Data Centers and AI-Driven Enterprise solutions affected the revenues of this vertical.
Service Provider contributed $400.2 million in revenues, down 15% year over year. However, net sales surpassed our estimate of $379.1 million. The downturn was primarily induced by weak demand for Automated WAN solutions.
Revenues from Enterprise recorded 8% growth year over year to $647.3 million. The upside was backed by healthy demand for AI-Driven Enterprise, hardware maintenance and professional services. Net sales missed our revenue estimate of $758.6 million. However, declining trends in Cloud Ready Data Center partially offset this positive trend.
By customer solution, Automated WAN solutions’ revenues aggregated $454.1 million, down 5% year over year. Net sales from AI-Driven Enterprise were $321.2 million, up 1% year over year. Cloud-Ready data centers contributed $180.8 million in revenues, down 30% year over year. Hardware Maintenance and Professional services generated $408.7 million in net sales, up from $391.6 million in the year-ago quarter.
By region, revenues from the Americas declined to $849.7 million from $857.4 million a year ago. Net sales from EMEA (Europe, Middle East and Africa) fell to $335.8 million from $378.5 million in the prior-year quarter. The downside in the EMEA region was induced by weak demand in the Service Provider and Cloud business. In the Asia-Pacific, revenues decreased 15.8% year over year to $179.3 million, owing to weakness in all verticals.
Other Details
Non-GAAP gross margin improved to 60.8% compared with 58.5% in the year-ago quarter. Favorable software revenue mix, easing of supply chain and other related costs boosted the gross margin.
Operating expenses, on a non-GAAP basis, rose to $579.8 million from $571.3 million, owing to higher headcount-related costs. Non-GAAP operating margin was 18.3%, marginally down from the year-ago quarter’s tally of 19.1%.
Cash Flow & Liquidity
In the fourth quarter of 2023, Juniper generated $9.1 million of cash from operating activities compared with $119.6 million in the year-earlier quarter. Delayed payment from federal taxes led to lower cash flow from operations. In 2023, the company registered an operating cash flow of $872.8 million, up from $97.6 million in 2022.
As of Dec 31, 2023, the company had $1.3 billion in cash and cash equivalents, with $1.61 billion of long-term debt compared to respective tallies of $1.23 billion and $1.6 billion in the prior-year period.
Zacks Rank & Other Stocks to Consider
Juniper currently sports a Zacks Rank #1 (Strong Buy)
Here are some other top-ranked stocks that investors may consider.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , sports a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 170.71%. In the last reported quarter, it delivered an earnings surprise of 78.99%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.