-=Juniper Networks (JNPR) reported earnings on Tue 29 Jan 2019 (a/h)

Juniper Networks beats by $0.02, misses on revs; guides Q1 EPS and revs below consensus; guides FY19 EPS below consensus; Q1 outlook reflects continued weakness with Cloud customers; co announces 6% div increase and $300 mln accelerated share repurchase program

• Reports Q4 (Dec) earnings of $0.59 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.57; revenues fell 4.7% year/year to $1.18 bln vs the $1.22 bln S&P Capital IQ Consensus.
• Co issues downside guidance for Q1, sees EPS of $0.17-0.23, excluding non-recurring items, vs. $0.38 S&P Capital IQ Consensus; sees Q1 revs of $950 mln to 1.01 bln vs. $1.11 bln S&P Capital IQ Consensus.
  • Co says its Q1 revenue outlook reflects continued weakness with Cloud customers. In addition, co is transitioning its go-to-market organization to enable its strategy. While co is confident these changes will lead to long-term growth, this may result in short-term challenges.
  • Co has also factored in the partial US Federal government shutdown and geopolitical uncertainty which could adversely impact its business in the early part of 2019. These factors lead the co to expect below normal seasonality for Q1. Co expects revenue to grow on a sequential basis beyond Q1 with better trends during the second half of the year.
  • Co expects to return to year-over-year growth at some point in 2H19. Co expects non-GAAP gross margins toward the low-end of co's long-term model in Q1, due to lower revenue volume, product mix, and the impact of China tariffs. Full year non-GAAP gross margins are expected to improve directionally from Q1 levels and gross margin for the year will be toward the mid-point of the co's long-term model.
• Co issues downside guidance for FY19, sees EPS of $1.75-1.85, excluding non-recurring items, vs. $2.04 S&P Capital IQ Consensus.
• Co also increases quarterly dividend to $0.19 per share, a 6% increase. Co intends to grow its dividend over time. Additionally, Juniper plans to enter an approximately $300 mln accelerated share repurchase program and intends to be opportunistic with its share repurchases thereafter. Co says today's actions are consistent with its commitment to return 75% of free cash flow to shareholders in 2019.