Juniper Networks (JNPR) reports lower Q2 earnings and revenue, but sees strong cloud orders

From Nasdaq: 2024-07-26 10:37:00

Juniper Networks, Inc. (JNPR) reported softer than expected second-quarter 2024 results, with revenues declining due to sluggish demand for Wide Area Networking solutions. Despite this, cloud orders and demand for Mist systems provided some relief to the top line. Quarterly revenues were $1.189 billion, falling short of the Zacks Consensus Estimate of $1.23 billion. Net income on a GAAP basis was $34.1 million or 10 cents per share, showing a 40% year-over-year growth.

Juniper Networks, Inc. also reported that product revenues were $681 million, down 29% year over year, while service revenues totaled $508 million, up 9%. Revenues from Cloud declined to $267.9 million, while revenues from Service Provider and Enterprise also saw decreases. The company saw declines in revenues from the Americas and Europe, the Middle East, and Africa, but recorded an uptick in gross margin to 59.2%.

In terms of cash flow and liquidity, Juniper Networks, Inc. used $9 million in operating cash flow in the second quarter of 2024 compared to $343 million cash generation in the previous year quarter. As of June 30, 2024, the company had $1.4 billion in cash, cash equivalents and investments with $1.6 billion of long-term debt. Juniper currently holds a Zacks Rank #2 (Buy).

Other companies like NVIDIA Corporation, Motorola Solutions Inc., and Silicon Motion Technology Corporation, also hold a Zacks Rank #2. NVIDIA focuses on visual computing technologies, Motorola provides services to government and public safety programs, and Silicon Motion is a leading developer of microcontroller ICs for NAND flash storage devices. These companies have delivered strong earnings surprises and have promising growth expectations.



Read more at Nasdaq: Juniper (JNPR) Misses Q2 Earnings Estimate, Revenues Fall Y/Y