F5 Networks, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component F5 Networks, Inc. (NASDAQ:FFIV) will unveil its latest earnings on Wednesday, July 20, 2011. F5 Networks, Inc. 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 71 cents per share, a rise of 42% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 70 cents. For the year, analysts are projecting net income of $2.85 per share, a rise of 52.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 68 cents per share against a mean estimate of net income of 67 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $290.7 million in revenue this quarter, a rise of 26.1% from the year ago quarter. Analysts are forecasting total revenue of $1.15 billion for the year, a rise of 30.4% from last year’s revenue of $882 million.

Analyst Ratings: Analysts are bullish on this stock with 17 analysts rating it as a buy, none rating it as a sell and 11 rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 41.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 45.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 67.7% while it rose 90.1% in the first quarter and 70.1% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During April 18, 2011 to July 14, 2011, the stock price had risen $17.43 (18.6%) from $93.53 to $110.96. The stock price saw one of its best stretches over the last year between October 19, 2010 and October 27, 2010 when shares rose for seven-straight days, rising 29.2% (+$26.59) over that span. It saw one of its worst periods between February 14, 2011 and February 23, 2011 when shares fell for seven-straight days, falling 12.8% (-$16.43) over that span. Shares are down $19.20 (-14.8%) year to date.

(Source: Xignite Financials)

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