Juniper (JNPR) Misses Q1 Earnings and Revenue Estimates

Core Viewpoint - Juniper Networks, Inc. reported disappointing first-quarter 2024 results, with both revenue and net income falling short of Zacks Consensus Estimates, amid ongoing merger plans with Hewlett Packard Enterprise valued at approximately $14 billion [1][2]. Financial Performance - The net loss on a GAAP basis for Q1 2024 was $0.8 million or $0.00 per share, a significant decline of 101% year-over-year from a profit of $85.4 million or $0.26 per share [2]. - Non-GAAP net income was $96.6 million or $0.29 per share, down from $156.6 million or $0.48 per share in the prior-year period, missing the Zacks Consensus Estimate by $0.10 [2]. Revenue Analysis - Total revenues for the quarter were $1.149 billion, down from $1.37 billion in the same quarter last year, missing the Zacks Consensus Estimate of $1.23 billion [3]. - Product revenues decreased by 29% year-over-year to $652 million, while service revenues increased by 8% to $497 million, driven by strong sales in software support and SaaS [3]. - Cloud revenues fell to $250 million from $264.9 million, and Service Provider revenues dropped to $382 million from $550 million, reflecting a slowdown across customer solutions [3][4]. Segment Performance - Enterprise net sales were $517 million, a 7% decline year-over-year, attributed to weaknesses in Campus and Branch and Data Center segments [4]. - By customer solution, Wide Area Networking revenues were $350 million, down 26% year-over-year, while Campus and Branch revenues were $241 million, down 24% [4]. Geographic Performance - Revenues from the Americas decreased to $666 million from $798.5 million, while revenues from Europe, the Middle East, and Africa fell to $311 million from $370 million [5]. - Asia Pacific revenues were down 15% year-over-year to $172 million, primarily due to declines in Cloud, Service Provider, and Enterprise verticals [5]. Profitability Metrics - Gross profit totaled $680.9 million, down from $771.2 million in the prior-year quarter, with a non-GAAP gross margin increase to 61.2% from 57.8% [6]. - Non-GAAP operating margin decreased to 10.6% from 14.8%, with operating expenses slightly declining by 1% to $582.3 million [7]. Cash Flow and Liquidity - Juniper generated $325 million in cash from operating activities, up from $191.5 million in the prior-year quarter [8]. - As of March 31, 2024, the company had $1.53 billion in cash and equivalents, with long-term debt of $1.6 billion [8].