F5 Networks Earnings: Here’s Why Shares are Up Now

F5 Networks, Inc. (NASDAQ:FFIV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.63%.

F5 Networks, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.75% to $1.12 in the quarter versus EPS of $1.14 in the year-earlier quarter.

Revenue: Rose 5.01% to $370.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: F5 Networks, Inc. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.08. It beat the average revenue estimate of $361.64 million.

Quoting Management: “Results for the third quarter exceeded our expectations,” said John McAdam, F5 president and chief executive officer. “Strong sales in the Americas led to a 6 percent sequential increase in both product and overall revenue.
“Product sales during the quarter were driven by growing demand for our BIG-IP 4000 appliances and our new entry-level BIG-IP 2000 series. In late June, we released our new midrange BIG-IP 5000 and BIG-IP 7000 series appliances, and initial customer response has been very encouraging.
“The significant performance and scalability enhancements of the new appliances have helped drive growing sales of our security software, including our new Advanced Firewall Manager and our recently upgraded Application Security Manager and Access Policy Manager. Sales of our other software modules have also grown, and demand for our software-only virtual edition products has increased steadily. Along with major enhancements to TMOS, designed to strengthen our SDN integration and cloud scaling capabilities, we recently introduced new 5-gigabit versions of our virtual edition products which run on all major hypervisors including AWS,” McAdam said.

Key Stats (on next page)…

Revenue increased 5.73% from $350.23 million in the previous quarter. EPS increased 4.67% from $1.07 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.19 to a profit $1.17. For the current year, the average estimate has moved down from a profit of $4.47 to a profit of $4.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)