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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends F5 Networks. The Motley Fool owns shares of F5 Networks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.