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Coming Soon: F5 Networks Earnings

By Seth Jayson - Updated Apr 10, 2017 at 12:48PM

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Checking expectations

F5 Networks (Nasdaq: FFIV) is expected to report Q2 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict F5 Networks's revenues will grow 3.1% and EPS will wane -1.9%.

The average estimate for revenue is $350.2 million. On the bottom line, the average EPS estimate is $1.06.

Revenue details
Last quarter, F5 Networks logged revenue of $365.5 million. 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 details
Last quarter, non-GAAP EPS came in at $1.14. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $1.47 billion. The average EPS estimate is $4.50.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 696 members out of 756 rating the stock outperform, and 60 members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 170 give F5 Networks a green thumbs-up, and 15 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.

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Stocks Mentioned

F5 Networks, Inc. Stock Quote
F5 Networks, Inc.
FFIV
$172.95 (-0.18%) $0.31

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