Juniper Networks revenue misses estimates on weak client spending

Juniper Networks

30/01/2024 22:51

Jan 30 (Reuters) - Juniper Networks  JNPR.N , which is
being acquired by Hewlett Packard Enterprise  HPE.N , reported
fourth-quarter revenue below market expectations on Tuesday,
hurt by weak spending by its cloud computing and enterprise
clients. 
    The Sunnyvale California-based company reported revenue of
$1.37 billion compared to expectations of $1.41 billion,
according to LSEG data. 
    Competition from Cisco Systems  CSCO.O  and Arista Networks
 ANET.N  and weak spending by wireless carriers and cable
operators grappling with an uncertain economy have hurt  demand
for Juniper's cloud computing and network security services.
    However, revenue from Mist and other products attached to
the Mist Cloud grew nearly 40% from a year ago. 
    Hewlett Packard Enterprise  HPE.N  entered into the $14
billion deal for Juniper earlier this month in a bid to spruce
up its own AI offerings. The deal expected to close between 2024
end and early 2025.
    HPE, which has been grappling with sluggish demand in its
traditional server business, is expected to benefit from
Juniper's network security and AI-enabled enterprise networking
operations.
    Juniper reported a profit of 61 cents per share, missing
analysts' average estimate of 64 cents.
    Its share price have declined more than 17% in 2022 and 2023
as high inflation levels prompted clients to cut back on tech
spending after shoring up investment during the pandemic. 
    
    
    

 (Reporting by Zaheer Kachwala and Seher Dareen in Bengaluru;
Editing by Arun Koyyur)
 ((Zaheer.Kachwala@thomsonreuters.com;))