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

F5 Networks, Inc. (NASDAQ:FFIV) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.82%.

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F5 Networks, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.83% to $1.07 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Rose 3.12% to $350.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: F5 Networks, Inc. reported adjusted EPS income of $1.07 per share. By that measure, the company met the mean analyst estimate of $1.07. It missed the average revenue estimate of $351.77 million.

Quoting Management: “As we indicated in our announcement of preliminary results on April 4, service provider revenues for the second quarter came in significantly below our expectations,” said John McAdam, F5 president and chief executive officer. “We believe this was primarily due to project delays, which caused customers to postpone orders that we had expected to close during the quarter. The weakness in sales to service providers was especially pronounced in North America. In addition, sales to the Federal government were also below our internal forecast as a consequence of continuing uncertainty over the impact of sequestration and other efforts to reduce Federal spending.”

Key Stats (on next page)…

Revenue decreased 4.17% from $365.45 million in the previous quarter. EPS decreased 6.14% from $1.14 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 $1.28 to a profit $1.12. For the current year, the average estimate has moved down from a profit of $5.01 to a profit of $4.54 over the last ninety days.

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