NEW YORK – Juniper Networks (NYSE:) reported better-than-expected third quarter results, driven by robust demand across its customer segments, particularly in cloud and AI networking initiatives.
The networking equipment maker posted adjusted earnings per share of $0.48, surpassing analyst estimates of $0.45. Revenue for the quarter came in at $1.33 billion, exceeding the consensus forecast of $1.27 billion. However, this represents a 5% YoY decrease in revenue.
CEO Rami Rahim highlighted the company’s strong performance, stating, “We experienced strong demand during the September quarter, with total product orders growing nearly 60% year-over-year.” He noted particularly robust orders from cloud customers for AI networking initiatives, as well as double-digit sequential and YoY order growth in enterprise and service provider verticals.
Despite the revenue decline, Juniper’s GAAP operating margin improved to 7.1% from 6.3% in the same quarter last year. Non-GAAP operating margin, however, decreased to 15.0% from 17.5% YoY.
CFO Ken Miller expressed optimism about the company’s outlook, saying, “We maintain strong momentum entering the December quarter and remain optimistic regarding our long-term financial prospects.”
Juniper’s board declared a quarterly cash dividend of $0.22 per share, payable on December 23, 2024. The company has suspended its stock repurchase program due to its pending $14 billion acquisition by Hewlett Packard Enterprise (NYSE:), expected to close in late 2024 or early 2025.
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