The 10-second takeaway
For the quarter ended Sep. 30 (Q4), F5 Networks met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew slightly.
Gross margins increased, operating margins dropped, net margins shrank.
F5 Networks reported revenue of $362.6 million. The 37 analysts polled by S&P Capital IQ predicted revenue of $366.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $314.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.12. The 38 earnings estimates compiled by S&P Capital IQ averaged $1.18 per share. GAAP EPS of $0.85 for Q4 were 2.4% higher than the prior-year quarter's $0.83 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.7%, 50 basis points better than the prior-year quarter. Operating margin was 30.8%, 80 basis points worse than the prior-year quarter. Net margin was 18.7%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $373.7 million. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $5.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 705 members out of 769 rating the stock outperform, and 64 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give F5 Networks a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on F5 Networks is outperform, with an average price target of $120.91.
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