Behind Juniper’s Accelerated Share Repurchase Program

Juniper out to buy investor confidence

Juniper Networks (JNPR) is one company that has lined up hundreds of millions of dollars in shareholder capital return programs this year. The company recently boosted its quarterly dividends by around 6.0% and announced an accelerated share repurchase program of about $300 million for this year.

The moves to boost dividends and launch an accelerated repurchase program are meant to drive home a point to shareholders: that those steering Juniper are confident in the company’s future prospects. With Juniper reporting declining revenues in recent quarters, it seems necessary for the management to try to boost investor confidence in the stock.

Behind Juniper’s Accelerated Share Repurchase Program

Juniper turned a profit

Not long after it declared the dividend boost and the special repurchase program, Juniper announced that it was acquiring Mist Systems, a specialist in cloud-based artificial intelligence-powered wireless networks that serves enterprise customers.

Juniper made a profit of $192.2 million in the fourth quarter ended in December, reversing a loss of $148.1 million a year ago. Better cost controls helped Juniper improve its bottom line in the latest quarter despite a decline in revenue.

Companies line up repurchase programs

Cisco Systems (CSCO) also has lined up a huge repurchase program of $24 billion. This is after it announced a $15 billion boost to its previous repurchase authorization last month. Facebook (FB) and IBM (IBM) also boosted their repurchase programs last year by $9.0 billion and $4.0 billion, respectively. Qualcomm (QCOM) announced plans to repurchase up to $30 billion of its shares after canceling its plan to acquire NXP Semiconductors (NXPI).