How Juniper Networks Will Grow Again
Juniper Networks (NYSE: JNPR) posted unsurprising third-quarter results, and the midpoint of management's revenue guidance for the fourth quarter leads to the third consecutive year of revenue decline. The network vendor is about to reverse that negative trend, though. Yet investors should stay prudent. Here's why.
During Q3, revenue stayed stable compared to the prior-year quarter at $1.1 billion. The growth in the company's service provider (telecommunication and cable operators) and enterprise segments offset the 7% year-over-year decrease in the cloud business.
Given the coronavirus-induced strong growth of cloud computing, that weak performance in the cloud area seems surprising. But quarterly results remain volatile because of the fluctuating investments of a few large customers. Beyond the short term, management expects the cloud segment to grow. Indeed, last year, Juniper transitioned its networking portfolio to better address the need of cloud customers with cost-effective, scalable, flexible, and performant solutions with its PTX routers (network devices that forward data between networks).
Source Fool.com
