Juniper Networks (NYSE: JNPR) reported second-quarter revenue and profit below analysts’ estimates on Thursday due to weak spending by cloud computing firms on the company’s networking equipment.
Companies have kept a tight lid on spending due to high borrowing costs, hurting companies such as Juniper and Cisco Systems (NASDAQ: CSCO).
Economic uncertainty has also hurt players like Juniper, while its cloud customers continue to digest inventory obtained through orders it had previously placed.
Shares of the company fell about 1.3% in extended trading.
In January, Hewlett Packard Enterprise (NYSE: HPE) announced it would acquire Juniper for about $14 billion as it looked to bolster its product portfolio. The deal is expected to close later this year or early 2025, Juniper said on Thursday.
For the second quarter, Juniper (NYSE: JNPR) reported revenue of $1.19 billion, below expectations of $1.25 billion, according to LSEG data.
On an adjusted basis, the company earned 31 cents per share, compared with estimates of a profit of 44 cents per share. It had posted a profit of 58 cents per share a year ago.
(Source: Reuters)
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.
