The 10-second takeaway
For the quarter ended March 31 (Q2), F5 Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.
Margins dropped across the board.
F5 Networks reported revenue of $350.2 million. The 31 analysts polled by S&P Capital IQ anticipated revenue of $350.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.07. The 32 earnings estimates compiled by S&P Capital IQ anticipated $1.06 per share. Non-GAAP EPS of $1.07 for Q2 were 0.9% lower than the prior-year quarter's $1.08 per share. GAAP EPS of $0.80 for Q2 were 7.0% lower than the prior-year quarter's $0.86 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 82.8%, 20 basis points worse than the prior-year quarter. Operating margin was 26.4%, 440 basis points worse than the prior-year quarter. Net margin was 18.1%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $366.2 million. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $4.51.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 692 members out of 752 rating the stock outperform, and 60 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 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 $112.76.
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