Juniper Networks (NYSE:JNPR) shares are surging today after the network products and solutions provider delivered a better-than-expected third-quarter bottom line, and announced a quarterly dividend of $0.22 per share.
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During the quarter, revenue of $1.4 billion declined by 0.7% over the prior year. EPS of $0.60 outpaced expectations by $0.05. While challenges in Cloud and Service segments remain, Juniper is witnessing strength in its Enterprise business, which now makes up over 50% of its total revenue. Impressively, in Customer Solutions, revenue from the AI-Driven Enterprise category surged to $382.5 million from $266.6 million a year ago.
Further, Juniper’s non-GAAP operating margin improved sequentially to 17.5% from 16.9%, and is eyeing an improvement of over 100 basis points in 2023.
Despite a challenging macro environment, Juniper expects sequential growth in bookings. While Enterprise momentum continues, demand from Cloud and Service customers is expected to be subdued. The company expects revenue for the fourth quarter at $1,400 million, +/-$50 million. EPS for the quarter is anticipated at $0.63, +/-$0.05.
What is the Forecast for JNPR?
Overall, the Street has a Moderate Buy consensus rating on Juniper Networks. The average JNPR price target of $32 implies a 21.4% potential upside.
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