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Juniper Networks shares are losing ground after the infrastructure hardware provider provided disappointing financial guidance, with weaker-than-expected demand from cloud computing customers.

While Juniper thinks it is a long-term beneficiary of the artificial intelligence software trend, it will take some time for that opportunity to develop. The shift appears to be hurting the company in the short run.

For the second quarter, Juniper (ticker: JNPR) posted revenue of $1.43 billion, up 13% from a year ago and slightly above the Wall Street consensus of $1.42 billion. Adjusted profits of 58 cents a share likewise were three cents above the Street consensus view of 55 cents.

““We delivered better than expected results during the June quarter as our teams continued to execute well and we benefited from improved supply,” CEO Rami Rahim said in a statement. “We were particularly encouraged by the momentum we experienced in our enterprise business, which not only had a record quarter, but also represented both our largest and fastest growing vertical for a third consecutive quarter.”

But management’s financial forecasts proved disappointing. For the third quarter, Juniper sees revenue of $1.385 billion, which would be down about 2% from the year earlier period, falling short of the Street consensus of $1.48 billion. The company projects non-GAAP profits for the quarter of 54 cents, while the consensus call was for 62 cents.

Analysts at Needham, Citi, Raymond James, and others all trimmed their financial forecasts and stock-price targets following the Thursday report.

In prepared remarks, CFO Kenneth Miller said orders were weaker than expected in the second quarter. He said he expects continued weakness in bookings in the third quarter, mostly from cloud customers, but to a lesser extent from telecom service providers. 

“We believe the softness in bookings is largely attributable to customer digestion of previously placed orders and certain projects being pushed to future periods,” Miller said. “We expect the macroeconomic environment to remain challenged, which may continue to impact customer spending. These factors are negatively impacting our revenue expectations.”

The company reduced its forecast of full-year revenue growth to between 5% and 6%, from 9%.

On a conference call with analysts, Rahim said that the focus by cloud providers right now is on building their AI offerings, which he says “might be a bit of a negative” for Juniper for now, although he adds that it will help in the longer term.

“To the extent that AI is a new killer app that’s going to be offered by cloud providers…it’s going to result in an increase of traffic…in areas…where we have a significant footprint,” he says.

Juniper’s disappointing results are weighing on shares of other network equipment providers with significant cloud exposure. Particularly hard hit is Arista Networks (ANET), which gets almost half of its business from Microsoft (MSFT) and Meta Platforms (META).

Arista shares, which had already been under pressure this week from concerns that Microsoft and Meta spent less than expected on capital equipment in the June quarter, are down 6% on Friday. That increased the stock’s four-day loss to 13%. Cisco Systems (CSCO) shares were down 2%.

Write to Eric J. Savitz at eric.savitz@barrons.com

Fri, 28 Jul 2023 03:43:00 -0500 en-US text/html https://www.barrons.com/articles/juniper-stock-earnings-outlook-cut-471d8912

July 13 (Reuters) - Juniper Networks (JNPR.N) forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud computing clients in a turbulent economy, sending the shares of the networking equipment maker down 6% after the bell.

Cloud service providers have been cutting back on orders for infrastructure equipment such as routers and switches in a blow for companies like Juniper Networks due to an overall drop in tech spending.

"We are currently facing some near-term order weakness from our cloud and to a lesser degree our service provider customers," CEO Rami Rahim said.

Juniper, which also provides network management software for companies like AT&T, Seagate and BlackBerry, said it expects revenue of about $1.38 billion, plus or minus $50 million, in the third quarter.

Analysts on average expected revenue of $1.48 billion, according to Refinitiv data.

It forecast adjusted earnings per share of 54 cents, plus or minus 5 cents, which was below expectations of 62 cents.

In the second quarter, the company's net revenue rose to $1.43 billion, beating expectations of $1.42 billion, thanks to higher demand and increased product backlog.

On an adjusted basis, the company earned 58 cents per share, compared with estimates of 55 cents.

Reporting by Zaheer Kachwala; Editing by Pooja Desai and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

Thu, 27 Jul 2023 09:16:00 -0500 en text/html https://www.reuters.com/technology/juniper-networks-sees-weak-third-quarter-revenue-lower-cloud-spending-2023-07-27/

LONDON -- Juniper Networks (NYSE:JNPR), a leader in secure, AI-driven networks, today announced it is supporting BT Group’s ongoing transformation journey towards a highly scalable, automated and robust cloud core infrastructure for business and consumer customers. BT Network Cloud supports diverse network applications across broadband, fixed, mobile and other mission-critical services on a single platform, using Juniper Networks’ high-performance cloud-native solutions and professional services.

With this strategic deployment, BT Network Cloud has now scaled to accommodate multiple key network-centric applications, such as mobile voice and data, broadband authentication and IP voice calls for tens of millions of customers without extra overhead costs. An innovative global technology footprint from Juniper, including infrastructure consolidation and virtualization, along with improved hardware density and power efficiency, reduces space and power requirements in support of a more sustainable infrastructure.

BT Simplifies and Improves Service Quality with Agile Network Cloud

BT Network Cloud enables applications that underpin BT Group's U.K. consumer and business network services. Juniper’s high-performance, high-availability fabric for BT Network Cloud provides extreme robustness and high performance for BT Group’s core applications across a widely distributed user base deployed at multiple locations across the U.K. Moving from dedicated compute platforms for each application to a shared infrastructure conserves and optimizes resources leading to better resource utilization and significantly lower environmental impact.

The provider’s network cloud optimizes service quality and streamlines operational deployment and management of core applications, which enables innovation and agility in delivering new services to market such as enhanced 5G services.

5G Roll Out and Scale to Meet Digital Demand

The introduction of 5G created a unique opportunity for BT Group to transform its core network to ensure it was well-positioned to offer a dynamic range of new services to customers at unprecedented scale. BT Group chose to build a network cloud to provide a common shared platform for core applications, which operate its broadband, fixed and mobile services. BT Group has migrated tens of millions of mobile subscribers and successfully deployed all its mobile application infrastructure on its network cloud.

The goal of the multiyear journey at BT Group was to deploy a state-of-the-art container-based fixed, broadband and mobile core that will boost business agility, operational efficiency, sustainability and meet security compliance.

News Highlights:

-BT uses Juniper for open, software-defined networking (SDN), switching and firewall solutions for its network cloud. The service provider uses Juniper’s SDN platform to automate the creation and management of its OpenStack-based telco cloud. The platform provides hybrid SDN orchestration and centralized control of virtual switching, routing and security. BT is running cloud-native containerized applications and optimizing costs using OpenStack.

-Juniper QFX Series Switches provide the high-performance, high-availability fabric needed to support the BT Network Cloud which has rapidly become the largest container-based cloud infrastructure in the world, and is still growing.

-BT’s cloud-native platform is deployed at multiple locations across the U.K. to form a distributed architecture designed to scale seamlessly alongside demand and to provide services closer to the end user than with traditional, more centralized deployments.

-Juniper collaborated with BT to deliver high-performance, high-availability fabric for BT Network Cloud. BT’s data centers contain over 1,000 Juniper QFX Series Switches and 2,000 Juniper vRouters. The switches connect all mission-critical application servers to the core network. The SDN platform is deployed on the servers to provide virtualized routing capability to connect workloads across BT’s network securely.

-Juniper vSRX Virtual Firewalls protect and secure the data center traffic. vSRX provides a network address translation capability which was not possible for one of BT’s application providers to deliver in software.

-BT Group selected Juniper for its engineering excellence and ability to provide an end-to-end network solution including hardware, software and tools that can integrate reliably with the complete cloud stack.

-By leveraging Juniper’s professional services, BT has successfully completed the project on time and ensured that the challenging service level, availability and performance targets of BT’s applications are met.

Supporting Quotes:

“Telecoms services have become central to business and consumer lives and as the U.K.’s national network provider, BT Group has a particular responsibility to lead from the front to deliver the cloud-native, sustainable digital services of the future. Our work with partners such as Juniper is helping to ensure that our critical infrastructure, network and services are agile, secure and resilient for the long term. Our millions of customers can remain confident in the experience-led integrity of the everyday and exceptional digital services on which they rely.”

- Howard Watson, Chief Security and Networks Officer, BT Group

“We are delighted that Juniper’s cloud-native networking solutions and comprehensive professional services were selected as the cornerstone of the BT Network Cloud. BT can respond to the demands of the next chapter of digital transformation at scale whilst leveraging the power of the network to enable new digital services for BT’s customers, fully supported by a cloud-native architecture enabling security, automation, scale and agility.”

- Raj Yavatkar, Chief Technology Officer, Juniper Networks

Tue, 18 Jul 2023 12:00:00 -0500 en text/html https://www.telecomtv.com/content/bt/bt-group-transforms-its-business-approach-with-a-cloud-core-network-from-juniper-networks-48051/

Needham analyst Alex Henderson reiterated the Buy rating on Juniper Networks, Inc. (NYSE:JNPR), lowering the price target to $33 from $41.

Juniper Networks reported Q2 2023 revenue growth of 13% Y/Y to $1.43 billion, beating the consensus of $1.42 billion.

The analyst notes that Enterprise is approaching 50% of Revenue and has robust "Mistified" growth.

Henderson thinks that duress in Service Provider (SP), which is down 1% with weak Orders and project push-outs, is concerning, and the weak Cloud, down 6% Y/Y, raises concerns about the company's spending priorities. 

Henderson cautions that SP and Cloud are likely to remain a headwind in 2H but expects Enterprise to remain robust, driven by share gains. 

JNPR is likely to be sidelined for a while but eventually should work higher. 

Based on the above, the analyst sharply cut the FY24 forecast to just 1.5% growth from 6.1% prior forecast.

However, the current backlog can drive Revenue growth upside over the next 2-3 years and could deliver 10% plus growth with 10%-20% Product growth, the analyst adds. 

The analyst adds that strengthening cash flow, improving product line, and expanding into the Cloud and Enterprise markets over time should gradually help this name.

Price Action: JNPR shares are trading lower by 6.1% to $27.86 on the last check Friday.

Fri, 28 Jul 2023 07:33:00 -0500 en text/html https://markets.businessinsider.com/news/stocks/juniper-sidelined-for-a-while-on-sluggishness-in-cloud-segment-but-eventually-should-work-higher-analyst-1032491223 No result found, try new keyword!Juniper Networks shares are losing ground after the infrastructure hardware provider provided disappointing financial guidance, with weaker-than-expected demand from cloud computing customers. Fri, 28 Jul 2023 03:44:00 -0500 en-us text/html https://www.msn.com/

(Reuters) - Juniper Networks forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud computing clients in a turbulent economy, sending the shares of the networking equipment maker down 6% after the bell.

Cloud service providers have been cutting back on orders for infrastructure equipment such as routers and switches in a blow for companies like Juniper Networks due to an overall drop in tech spending.

"We are currently facing some near-term order weakness from our cloud and to a lesser degree our service provider customers," CEO Rami Rahim said.

Juniper, which also provides network management software for companies like AT&T, Seagate and BlackBerry, said it expects revenue of about $1.38 billion, plus or minus $50 million, in the third quarter.

Analysts on average expected revenue of $1.48 billion, according to Refinitiv data.

It forecast adjusted earnings per share of 54 cents, plus or minus 5 cents, which was below expectations of 62 cents.

In the second quarter, the company's net revenue rose to $1.43 billion, beating expectations of $1.42 billion, thanks to higher demand and increased product backlog.

On an adjusted basis, the company earned 58 cents per share, compared with estimates of 55 cents.

(Reporting by Zaheer Kachwala; Editing by Pooja Desai and Arun Koyyur)

Thu, 27 Jul 2023 09:48:00 -0500 en-US text/html https://finance.yahoo.com/news/juniper-networks-sees-weak-third-211602899.html

(Reuters) - Juniper Networks forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud computing clients in a turbulent economy, sending the shares of the networking equipment maker down 6% after the bell.

Cloud service providers have been cutting back on orders for infrastructure equipment such as routers and switches in a blow for companies like Juniper Networks due to an overall drop in tech spending.

"We are currently facing some near-term order weakness from our cloud and to a lesser degree our service provider customers," CEO Rami Rahim said.

Juniper, which also provides network management software for companies like AT&T, Seagate and BlackBerry, said it expects revenue of about $1.38 billion, plus or minus $50 million, in the third quarter.

Analysts on average expected revenue of $1.48 billion, according to Refinitiv data.

It forecast adjusted earnings per share of 54 cents, plus or minus 5 cents, which was below expectations of 62 cents.

In the second quarter, the company's net revenue rose to $1.43 billion, beating expectations of $1.42 billion, thanks to higher demand and increased product backlog.

On an adjusted basis, the company earned 58 cents per share, compared with estimates of 55 cents.

(Reporting by Zaheer Kachwala; Editing by Pooja Desai and Arun Koyyur)

Thu, 27 Jul 2023 10:10:00 -0500 en-US text/html https://finance.yahoo.com/news/juniper-networks-sees-weak-third-211602626.html No result found, try new keyword!Juniper Networks Sees Weak Third-Quarter Revenue on Lower Cloud Spending (Reuters) - Juniper Networks forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud ... Thu, 27 Jul 2023 09:32:00 -0500 text/html https://www.usnews.com/news/technology/articles/2023-07-27/juniper-networks-sees-weak-third-quarter-revenue-on-lower-cloud-spending

Juniper Networks forecast third-quarter revenue below market estimates on Thursday on lower spending by cloud computing clients in a turbulent economy, sending the shares of the networking equipment maker down 6 per cent after the bell.

Cloud service providers have been cutting back on orders for infrastructure equipment such as routers and switches in a blow for companies like Juniper Networks due to an overall drop in tech spending.

"We are currently facing some near-term order weakness from our cloud and to a lesser degree our service provider customers," CEO Rami Rahim said.

Juniper, which also provides network management software for companies like AT&T, Seagate and BlackBerry, said it expects revenue of about US$1.38 billion, plus or minus US$50 million, in the third quarter.

Analysts on average expected revenue of US$1.48 billion, according to Refinitiv data.

It forecast adjusted earnings per share of 54 cents, plus or minus 5 cents, which was below expectations of 62 cents.

In the second quarter, the company's net revenue rose to US$1.43 billion, beating expectations of US$1.42 billion, thanks to higher demand and increased product backlog.

On an adjusted basis, the company earned 58 cents per share, compared with estimates of 55 cents.

Thu, 27 Jul 2023 17:16:00 -0500 en text/html https://www.channelnewsasia.com/business/juniper-networks-sees-weak-third-quarter-revenue-lower-cloud-spending-3660121 JN0-412 exam dump and training guide direct download
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