Yahoo Finance How Could Juniper Increase Its Shareholder Value?
Juniper Has Disappointing 1Q16: Why Is It Upbeat about 2016?
Share repurchases and dividend yield
Juniper Networks (JNPR) repurchased shares worth $75 million and paid $38 million in dividends in 1Q16. Since 1Q14, Juniper has returned approximately $3.8 billion worth of capital to shareholders against its commitment to return $4.1 billion by the end of 2016.
In 1Q16, Juniper’s cash flow from operations stood at $172 million, which was lower than 1Q15 due to an increase in accounts receivables.
Juniper pays $0.10 per quarter, or $0.40 per year, in dividends. This is a 1.8% yield. In comparison, peer companies Cisco Systems (CSCO), Harris (HRS), and Motorola Solutions (MSI) had dividend yields of 3.9%, 2.6%, and 2.3%, respectively, in their last reported quarters.
Other important highlights in 1Q16
Juniper’s demand metrics are strong, as its product-to-bill ratio was greater than 1. The total deferred revenue was $1.3 billion in 1Q16, an increase of $85 million YoY (year-over-year) and $92 million QoQ (quarter-over-quarter). Product deferred revenue was $261 million, an increase of $8 million YoY and $21 million QoQ. Juniper increased employee strength by 6% YoY in 1Q16 and now has more than 9,200 employees.
Juniper expects revenues of approximately $1.2 billion in 2Q16, which includes $10 million–$15 million in revenues from the BTI Systems acquisition. In a press release, Juniper stated, “We intend to target a capital return policy of approximately 50% of annual free cash flow, inclusive of share repurchases and dividends, after completion of the $4.1 billion capital return program.”
Juniper accounts for 3.9% of the PureFunds ISE Cyber Security ETF (HACK).
In the final part of our series, we’ll look at Juniper’s moving averages in March 2016.
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