F5 Networks Inc. Earnings: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component F5 Networks Inc. (NASDAQ:FFIV) reported net income above Wall Street’s expectations for the first quarter. F5 Networks provides technology that optimizes the security and performance of servers, data storage devices and other network resources.

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F5 Networks Earnings Cheat Sheet for the First Quarter.

Results: Net income for F5 Networks Inc. rose to $66.5 million (83 cents per share) vs. $55.7 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 19.5% from the year earlier quarter.

Revenue: Rose 19.9% to $322.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FFIV reported adjusted net income of $1.03 per share. By that measure, the company beat the mean estimate of 81 cents per share. Analysts were expecting revenue of $319 million.

Quoting Management: “Strong sales in APAC, Japan, and particularly North America offset the seasonal slowdown that typically characterizes the first quarter of a new fiscal year. We were also pleased that sales in the EMEA region exceeded our expectations,” said John McAdam, F5 president and chief executive officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 29%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 40.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 40.2% and in the third quarter of the last fiscal year, the figure rose 54.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the fourth quarter of the last fiscal year, by 6 cents in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 85 cents a share to 84 cents over the last sixty days. For the fiscal year, the average estimate has moved up from $3.48 a share to $3.57 over the last ninety days.

Competitors to Watch: Blue Coat Systems, Inc. (NASDAQ:BCSI), Radware Ltd. (NASDAQ:RDWR), Riverbed Technology, Inc. (NASDAQ:RVBD), Cisco Systems, Inc. (NASDAQ:CSCO), Procera Networks, Inc. (AMEX:PKT), Juniper Networks, Inc. (NYSE:JNPR), Dialogic Inc (NASDAQ:DLGC), NetScout Systems, Inc. (NASDAQ:NTCT), Brocade Communications Systems, Inc. (NASDAQ:BRCD), and Hewlett-Packard Company (NYSE:HPQ).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com