F5 Networks First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component F5 Networks, Inc. (NASDAQ:FFIV) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. F5 Networks provides technology that optimizes the security and performance of servers, data storage devices and other network resources.

F5 Networks, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 89 cents per share, a rise of 7.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 96 cents. Between one and three months ago, the average estimate moved down. It has risen from 88 cents during the last month.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 87 cents per share versus a mean estimate of profit of 94 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $366.7 million in revenue this quarter, a rise of 13.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.57 billion for the year, a rise of 13.8% from last year’s revenue of $1.38 billion.

Stock Price Performance: Between November 16, 2012 and January 16, 2013, the stock price had risen $10.68 (12.3%), from $86.64 to $97.32. The stock price saw one of its best stretches over the last year between September 11, 2012 and September 19, 2012, when shares rose for seven straight days, increasing 16% (+$15.26) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 10.5% (-$13.20) over that span.

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and 13 rating the stock a hold, there are indications of a bullish stance by analysts.

Here’s how F5 Networks traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

FFIV

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 19.7% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 23.5% in the second quarter of the last fiscal year and 15.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.67 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.75 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.3% to $466 million while assets decreased 0.9% to $776.1 million.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 0.2% to $67.7 million (85 cents a share) from $67.6 million (83 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 15.2% to $362.6 million from $314.6 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)