Juniper Networks (NYSE:JNPR), an organization that sells networking merchandise, together with routers, switches, community administration software program, community safety merchandise, and software-defined networking know-how has gained near 27% in 2024 whereas its peer Microsoft’s stock (NASDAQ: MSFT) is up about 14% over the identical interval. Hewlett Packard Enterprise (HPE) introduced in January 2024 that it was buying Juniper for $40 per share in money, valuing the networking firm at about $14 billion. HPE and Juniper representatives met with U.S. Division of Justice regulators in mid-November in a bid to forestall an antitrust problem to HPE’s proposed acquisition. The businesses count on to shut the deal in early 2025, topic to regulatory approvals. The acquisition will combine HPE’s current networking portfolio with Juniper’s cutting-edge AI-driven options, delivering a strong and complete networking providing that meets the escalating demand for safe, unified, and cloud-native networking options.
Juniper’s Q3 internet revenues have been $1,331.0 million, a lower of 5% year-over-year (y-o-y), and a rise of 12% sequentially. GAAP working margin was 7.1%, a rise from 6.3% within the third quarter of 2023, and a rise from 3.8% within the second quarter of 2024. The corporate’s GAAP internet revenue was $92.6 million, a rise of twenty-two% y-o-y, leading to diluted internet revenue per share of $0.28. A notable key spot was the substantial improve in product orders, notably within the cloud phase, fueled by rising demand for AI-powered networking options.
Juniper’s steadiness sheet stays robust, with whole money and investments rising to $1.6 billion. Nonetheless, working money flows declined year-over-year. The corporate declared a $0.22 per share dividend however suspended its share repurchase program pending the merger with HPE. We might be carefully monitoring the efficiency of Juniper Networks’ AI-driven enterprise enterprise (which additionally contributes 45% of whole revenues), which leverages synthetic intelligence and machine studying to boost consumer experiences and streamline administrative duties associated to wi-fi and wired entry. Notably, this division skilled a 13% decline to $1.7 billion within the first 9 months of the 12 months.
Individually, a number of key tendencies might assist Juniper in the long term, together with growing demand for high-speed 400G ethernet community gear, notably from cloud and hyperscaler prospects. The corporate is dedicated to sustaining its momentum and capitalizing on rising alternatives, together with these introduced by its deliberate merger with HPE. Nonetheless, we predict the inventory is pretty priced at present ranges (Dec.30). We’ve got revised Juniper’s valuation to $37 per share, primarily based on a $1.67 anticipated EPS and a 22.2x P/E a number of for the fiscal 12 months 2024. Additionally, see our evaluation of Juniper Income for a take a look at the corporate’s key income streams and the way they’ve been trending.
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| Returns | Jan 2025 MTD [1] |
Since begin of 2024 [1] |
2017-25 Complete [2] |
| JNPR Return | 0% | 27% | 64% |
| S&P 500 Return | 0% | 23% | 163% |
| Trefis Strengthened Worth Portfolio | 0% | 16% | 748% |
[1] Returns as of 1/2/2025
[2] Cumulative whole returns for the reason that finish of 2016
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