Juniper Networks Tops Wall Street Earnings Estimates; CEO to Retire (JNPR)
Juniper Networks (NASDAQ: JNPR) released its fiscal second-quarter earnings results after the closing bell on Tuesday.
The company reported both earnings per share and revenue that came in ahead of Wall Street estimates. Juniper also provided guidance for the upcoming fiscal third-quarter. Separately, the company announced a $1 billion share buyback and the retirement of its CEO, Kevin Johnson. In late Tuesday, trade the stock was last down a little more than one percent to $21.09.
"We're pleased with our strong second quarter results, which reflect our continued ability to execute on our strategy," said Kevin Johnson, chief executive officer of Juniper Networks. "We continue to see signs of strength in our key markets and we are confident in our routing and switching portfolio.
Johnson added, "We are also seeing early signs of improving security demand. As we drive innovation to differentiate across our product portfolio, we continue to deliver revenue growth and stay focused on executing with agility to drive value for all our stakeholders."
Fiscal Q2 Financial Results
Juniper Networks reported net income of $97.9 million or $0.19 per share, compared to $57.7 million or $0.11 per share, in last year's corresponding quarter.
On a non-GAAP basis, the company reported net income of $148.1 million or $0.29 per share, versus $103.1 million or $0.19 per share, in last year's second-quarter. This easily topped analysts' consensus EPS estimates of $0.25.
Net revenue in the quarter was up seven percent to $1.15 billion from $1.07 billion last year. This also beat Wall Street estimates of $1.09 billion.
Looking ahead to the third-quarter, Juniper guided for non-GAAP EPS of $0.29 to $0.32 on revenue of $1.14 billion to $1.18 billion. This compares to current consensus of $0.29 per share on revenue of $1.14 billion.
CEO Johnson to Retire
Along with reporting its earnings results, Juniper also announced that CEO Kevin Johnson will be retiring once the company finds a replacement. The company's board has formed a search committee and has retained Heidrick and Struggles to assist in the recruiting process.
$1 Billion Share Buyback
Juniper's board has approved an additional $1 billion stock repurchase program. The company currently has around $333 million of outstanding authorized funds under its current buyback program, giving Juniper a comprehensive total of around $1.333 billion for share repurchases.
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