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Juniper (JNPR) Misses Q2 Earnings Estimate, Revenues Fall Y/Y
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Juniper Networks, Inc. (JNPR - Free Report) reported soft second-quarter 2024 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 Wide Area Networking solutions. Strong growth in cloud orders and growing demand for Mist systems partially cushioned the top line.
Net Income
On a GAAP basis, net income in the second quarter was $34.1 million or 10 cents per share compared with $24.4 million or 7 cents per share in the prior-year quarter. The 40% year-over-year growth was mainly driven by lower operating expenses.
Non-GAAP net income was $101.6 million or 31 cents per share compared with respective figures of $189 million or 58 cents per share in the prior-year period. The bottom line lagged the Zacks Consensus Estimate by 13 cents.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Quarterly revenues were $1.189 billion, down from $1.43 billion in the year-ago quarter, primarily due to softness in Service Provider verticals induced by macroeconomic challenges and continued digestion of previously placed orders by clients. Annual recurring revenue from renewable contracts for software licenses, software support and maintenance and SAAS was $424 million, up 33% year over year. The top line missed the Zacks Consensus Estimate of $1.23 billion.
Product revenues were $681 million, declining 29% year over year. Service revenues totaled $508 million, up 9%, backed by strong sales of software support, SaaS and hardware support contracts.
By vertical, Cloud revenues declined to $267.9 million from $311 million in the year-ago quarter. However, revenue from this segment surpassed our estimate of $234.2 million. The year-over-year decrease was attributable to softness across Wide Area Networking, Campus and Branch, Hardware Maintenance and Professional Services. Growth in Data Center partially supported the top line in this segment. However, the company is witnessing strong growth in cloud orders as customer inventory levels are normalized.
Revenues from Service Provider declined to $367.1 million, down 22% from $473.6 million reported in the prior-year period. Net sales fell short of our revenue estimate of $380.5 million. The fall was due to weakness in Wide Area Networking, Campus and Branch and Data Center.
Net sales from Enterprise were $554.6 million, down 14.1% year over year, due to a slowdown across all customer solutions. Increases in Hardware Maintenance and Professional Services partially cushioned the net sales. The figure missed our revenue estimate of $603.8 million.
By customer solution, Wide Area Networking revenues amounted to $340.8 million, down 28.2% year over year. Net sales from Campus and Branch were $279.9 million, down 24.6% year over year. Revenues from Data Center were $168.7 million, down 15.8% year over year. Hardware Maintenance and Professional Services reported $400.2 million, up 4.2% year over year.
By region, revenues from the Americas fell to $714 million from $848.6 million in the year-ago quarter. Revenues from Europe, the Middle East and Africa declined to $296.4 million from $354.6 million in the prior-year quarter. In the Asia Pacific, net sales were down 21% year over year to $179.2 million.
Other Details
Gross profit totaled $688.5 million compared with $813.1 million in the year-ago quarter. Non-GAAP gross margin rose to 59.2% from 58.3% in the prior-year quarter. The uptick was mainly driven by a favorable software revenue mix, productivity improvements and lower inventory-related expenses. Non-GAAP operating margin decreased to 10.9% from 16.9% reported in the year-ago quarter. Non-GAAP operating expenses were $574.7 million, down from 592.2 million in the year-ago quarter.
Cash Flow & Liquidity
In the second quarter of 2024, Juniper utilized $9 million in operations against $343 million cash generation in the prior-year quarter.
As of Jun 30, 2024, the company had $1.4 billion in cash, cash equivalents and investments with $1.6 billion of long-term debt.
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.
Motorola Solutions Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 at present.
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
Silicon Motion Technology Corporation (SIMO - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.
It is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.
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Juniper (JNPR) Misses Q2 Earnings Estimate, Revenues Fall Y/Y
Juniper Networks, Inc. (JNPR - Free Report) reported soft second-quarter 2024 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 Wide Area Networking solutions. Strong growth in cloud orders and growing demand for Mist systems partially cushioned the top line.
Net Income
On a GAAP basis, net income in the second quarter was $34.1 million or 10 cents per share compared with $24.4 million or 7 cents per share in the prior-year quarter. The 40% year-over-year growth was mainly driven by lower operating expenses.
Non-GAAP net income was $101.6 million or 31 cents per share compared with respective figures of $189 million or 58 cents per share in the prior-year period. The bottom line lagged the Zacks Consensus Estimate by 13 cents.
Juniper Networks, Inc. Price, Consensus and EPS Surprise
Juniper Networks, Inc. price-consensus-eps-surprise-chart | Juniper Networks, Inc. Quote
Revenues
Quarterly revenues were $1.189 billion, down from $1.43 billion in the year-ago quarter, primarily due to softness in Service Provider verticals induced by macroeconomic challenges and continued digestion of previously placed orders by clients. Annual recurring revenue from renewable contracts for software licenses, software support and maintenance and SAAS was $424 million, up 33% year over year. The top line missed the Zacks Consensus Estimate of $1.23 billion.
Product revenues were $681 million, declining 29% year over year. Service revenues totaled $508 million, up 9%, backed by strong sales of software support, SaaS and hardware support contracts.
By vertical, Cloud revenues declined to $267.9 million from $311 million in the year-ago quarter. However, revenue from this segment surpassed our estimate of $234.2 million. The year-over-year decrease was attributable to softness across Wide Area Networking, Campus and Branch, Hardware Maintenance and Professional Services. Growth in Data Center partially supported the top line in this segment. However, the company is witnessing strong growth in cloud orders as customer inventory levels are normalized.
Revenues from Service Provider declined to $367.1 million, down 22% from $473.6 million reported in the prior-year period. Net sales fell short of our revenue estimate of $380.5 million. The fall was due to weakness in Wide Area Networking, Campus and Branch and Data Center.
Net sales from Enterprise were $554.6 million, down 14.1% year over year, due to a slowdown across all customer solutions. Increases in Hardware Maintenance and Professional Services partially cushioned the net sales. The figure missed our revenue estimate of $603.8 million.
By customer solution, Wide Area Networking revenues amounted to $340.8 million, down 28.2% year over year. Net sales from Campus and Branch were $279.9 million, down 24.6% year over year. Revenues from Data Center were $168.7 million, down 15.8% year over year. Hardware Maintenance and Professional Services reported $400.2 million, up 4.2% year over year.
By region, revenues from the Americas fell to $714 million from $848.6 million in the year-ago quarter. Revenues from Europe, the Middle East and Africa declined to $296.4 million from $354.6 million in the prior-year quarter. In the Asia Pacific, net sales were down 21% year over year to $179.2 million.
Other Details
Gross profit totaled $688.5 million compared with $813.1 million in the year-ago quarter. Non-GAAP gross margin rose to 59.2% from 58.3% in the prior-year quarter. The uptick was mainly driven by a favorable software revenue mix, productivity improvements and lower inventory-related expenses. Non-GAAP operating margin decreased to 10.9% from 16.9% reported in the year-ago quarter. Non-GAAP operating expenses were $574.7 million, down from 592.2 million in the year-ago quarter.
Cash Flow & Liquidity
In the second quarter of 2024, Juniper utilized $9 million in operations against $343 million cash generation in the prior-year quarter.
As of Jun 30, 2024, the company had $1.4 billion in cash, cash equivalents and investments with $1.6 billion of long-term debt.
Zacks Rank & Other Stocks to Consider
Juniper currently has a Zacks Rank #2 (Buy).
NVIDIA Corporation (NVDA - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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.
Motorola Solutions Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 at present.
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
Silicon Motion Technology Corporation (SIMO - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.
It is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.