The 10-second takeaway
For the quarter ended Dec. 31 (Q1), F5 Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins grew, operating margins dropped, net margins dropped.
F5 Networks logged revenue of $365.5 million. The 36 analysts polled by S&P Capital IQ anticipated a top line of $366.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $322.4 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 $1.14. The 37 earnings estimates compiled by S&P Capital IQ forecast $1.15 per share. GAAP EPS of $0.88 for Q1 were 6.0% 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 83.3%, 50 basis points better than the prior-year quarter. Operating margin was 29.8%, 110 basis points worse than the prior-year quarter. Net margin was 19.0%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $379.5 million. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $1.57 billion. The average EPS estimate is $5.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 703 members out of 764 rating the stock outperform, and 61 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give F5 Networks a green thumbs-up, and 18 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 $108.93.
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