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What's in the Offing for F5 (FFIV) This Earnings Season?
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F5 (FFIV - Free Report) is scheduled to report second-quarter fiscal 2023 results after market close on Apr 19.
The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 7.5%.
For the fiscal second quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $700.7 million, suggesting a year-over-year increase of 10.5%.
The company anticipates non-GAAP earnings in the range of $2.36-$2.48 per share ($2.42 at the midpoint). The Zacks Consensus Estimate stands at $2.42 per share, indicating a year-over-year increase of approximately 13.6%.
F5’s sustained focus on transitioning the business into a software-driven model is anticipated to have aided the company’s overall performance in the fiscal second quarter. The surging demand for multi-cloud application services is expected to have been a key growth driver during the quarter.
Growing traction for the Enterprise License Agreement and annual subscriptions by customers are likely to have boosted software growth in the to-be-reported quarter. F5’s fiscal second-quarter performance is likely to have benefited from the hybrid work environment and the ongoing digital transformation wave, which is boosting the demand for secured communication networks.
Furthermore, an improvement in the supply chain is likely to have helped the company meet the demand for its Systems’ products in the second quarter. This is likely to have boosted its Systems’ segment revenues during the to-be-reported quarter.
However, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt F5’s overall financial performance in the fiscal second quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though F5 carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Skyworks Solutions (SWKS - Free Report) , Garmin (GRMN - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is scheduled to report second-quarter fiscal 2023 results on May 2. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.02 per share, implying a year-over-year decline of 23.2%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +11.00% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decline 8.2% year over year to $1.08 billion.
Alphabet carries a Zacks Rank #3 and has an Earnings ESP of +10.48%. The company is slated to report first-quarter 2023 results on Jan 25. Its earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being -8%.
The Zacks Consensus Estimate for GOOGL’s first-quarter earnings is pegged at $1.05 per share, indicating a year-over-year decrease of 14.6%. The consensus mark for revenues stands at $57 billion, suggesting a year-over-year increase of 1.7%.
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What's in the Offing for F5 (FFIV) This Earnings Season?
F5 (FFIV - Free Report) is scheduled to report second-quarter fiscal 2023 results after market close on Apr 19.
The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 7.5%.
For the fiscal second quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $700.7 million, suggesting a year-over-year increase of 10.5%.
The company anticipates non-GAAP earnings in the range of $2.36-$2.48 per share ($2.42 at the midpoint). The Zacks Consensus Estimate stands at $2.42 per share, indicating a year-over-year increase of approximately 13.6%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
F5’s sustained focus on transitioning the business into a software-driven model is anticipated to have aided the company’s overall performance in the fiscal second quarter. The surging demand for multi-cloud application services is expected to have been a key growth driver during the quarter.
Growing traction for the Enterprise License Agreement and annual subscriptions by customers are likely to have boosted software growth in the to-be-reported quarter. F5’s fiscal second-quarter performance is likely to have benefited from the hybrid work environment and the ongoing digital transformation wave, which is boosting the demand for secured communication networks.
Furthermore, an improvement in the supply chain is likely to have helped the company meet the demand for its Systems’ products in the second quarter. This is likely to have boosted its Systems’ segment revenues during the to-be-reported quarter.
However, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt F5’s overall financial performance in the fiscal second quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though F5 carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Skyworks Solutions (SWKS - Free Report) , Garmin (GRMN - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is scheduled to report second-quarter fiscal 2023 results on May 2. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.02 per share, implying a year-over-year decline of 23.2%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +11.00% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decline 8.2% year over year to $1.08 billion.
Alphabet carries a Zacks Rank #3 and has an Earnings ESP of +10.48%. The company is slated to report first-quarter 2023 results on Jan 25. Its earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being -8%.
The Zacks Consensus Estimate for GOOGL’s first-quarter earnings is pegged at $1.05 per share, indicating a year-over-year decrease of 14.6%. The consensus mark for revenues stands at $57 billion, suggesting a year-over-year increase of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.