NEW YORK - Juniper Networks (NYSE:JNPR) reported a decline in its first-quarter revenue and earnings, missing analyst expectations.
The company's revenue came in at $1.15 billion, a 16% decrease compared to the same period last year and below the consensus estimate of $1.23 billion. Adjusted earnings per share (EPS) for the quarter were $0.29, which was $0.12 short of the analyst estimate of $0.41.
The company experienced a significant year-over-year decline in both GAAP and adjusted operating margins, with GAAP operating margin falling to -1.2%, down from 8.4% in the first quarter of 2023. The adjusted operating margin also saw a decrease to 10.6% from 14.8% in the previous year.
Furthermore, Juniper Networks reported a GAAP net loss of $0.8 million, marking a 101% decrease from the first quarter of 2023, resulting in a diluted net loss per share of -$0.00. Adjusted net income was $96.6 million, down 38% YoY, with a sequential decrease of 51%.
Juniper's CEO, Rami Rahim, commented on the results, "While many of our customers continue to be impacted by macro headwinds and the digestion of previously placed orders, we are starting to see a recovery in demand from our cloud customers and saw another quarter of double-digit order growth in our Mist-led business."
He expressed optimism for the company's long-term growth, particularly as customers adopt Juniper's AI offerings for network operations and data center use cases.
Following the earnings release, Juniper Networks' stock moved down by 1%, indicating a slight negative response from the market. This movement suggests investors are somewhat concerned with the company's performance but not overwhelmingly so, given the modest change in stock price.
The financial results reflect challenges in the broader technology sector, with Juniper Networks facing headwinds that have impacted customer orders and overall demand. Despite these challenges, the company's focus on AI offerings and the reported recovery in cloud customer demand could signal potential areas of growth in the future.
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