NEW YORK - Juniper Networks (NYSE:JNPR), a company specializing in secure, AI-native networks, reported a decrease in second-quarter revenue and missed analyst expectations for earnings per share (EPS). The firm's Q2 EPS came in at $0.31, falling short of the consensus estimate of $0.44. Revenue for the quarter was $1.19 billion, which also did not meet the analyst projection of $1.25 billion.
The company's financial results revealed a 17% decline in revenue compared to the same period last year, although it marked a 4% increase from the previous quarter. Despite the revenue downturn, GAAP net income saw a 40% year-over-year (YoY) increase, with a diluted net income per share of $0.10. On an adjusted basis, net income decreased by 46% YoY, with a sequential rise of 5%.
Juniper's stock experienced a 1% decline following the earnings release, indicating a modest negative market response to the earnings miss. CEO Rami Rahim commented on the company's performance, stating, "We experienced better than expected demand during the June quarter, with orders growing double-digits sequentially and year-over-year." He highlighted robust orders from cloud customers and better than expected enterprise demand as key drivers of the quarter's performance.
Despite the mixed financial results, Juniper's CFO, Ken Miller, expressed that the Q2 financial results were largely in line with the company's expectations at the beginning of the quarter and maintained an optimistic outlook for the company's long-term financial prospects.
Juniper Networks' balance sheet showed an increase in total cash, cash equivalents, and investments to $1.43 billion as of June 30, 2024, up from $1.30 billion on the same date in 2023. However, the company used $8.9 million in net cash flows from operations during the quarter, a significant shift from the $343.0 million provided by operations in the second quarter of the previous year.
The company's board of directors declared a quarterly cash dividend of $0.22 per share, reinforcing its commitment to returning value to shareholders despite the suspension of stock repurchases. The dividend is scheduled to be paid on September 23, 2024, to stockholders of record as of September 2, 2024.
As Juniper Networks navigates through its financial performance, the proposed merger with Hewlett Packard Enterprise (NYSE:HPE), announced earlier this year, remains on track to close in late 2024 or early 2025, subject to regulatory approvals and customary closing conditions.
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