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The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.97 per share, indicating a decline of 7.5% from the year-ago quarter’s reported figure. The consensus mark for revenues is pinned at $686.6 million, suggesting a 2.3% decrease from the year-ago quarter.
FFIV surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.8%.
In the last reported quarter, FFIV’s non-GAAP earnings of $2.91 per share beat the Zacks Consensus Estimate of $2.88. However, revenues of $681 million for the fiscal second quarter missed the consensus mark of $686.9 million.
Let’s see how things have shaped up for the upcoming announcement.
The persistent macroeconomic uncertainty and its impact on customer spending are likely to have affected FFIV’s fiscal third-quarter revenues, especially the Product segment, which comprises Software and Systems sub-divisions. Our estimate of $304.5 million for the Product segment’s revenues indicates a year-over-year decline of 7.2%.
In the to-be-reported quarter, the Product division’s revenues are likely to have been hurt by the softened demand for its Systems products. Our estimate of $137 million for Systems’ revenues indicates an 11.4% year-over-year decrease.
Nevertheless, the FFIV Product segment’s fiscal third-quarter performance is likely to have been aided by the recovering demand for its software solutions, which had been hurt by IT budget cuts amid lingering macroeconomic uncertainties. In the second quarter of 2024, FFIV’s Software revenues increased 28% year over year. The growth in F5’s Software revenues has continued in the past few quarters. This trend is likely to have continued in the to-be-reported quarter. Our estimate for Software’s third-quarter revenues is pegged at $167.5 million.
The acceleration in BIG-IP and NGINX subscription software deals is expected to have remained a major growth driver in the to-be-reported quarter. BIG-IP’s data point performance, automation capabilities and the lower cost of ownership are likely to have helped F5 win multiple deals in the fiscal third quarter. Moreover, FFIV is anticipated to have witnessed strong demand for its NGINX subscription as large enterprises continue to adopt the solution for their cloud and Kubernetes workloads.
Additionally, the company’s cost-saving initiatives, which include headcount reduction, eliminating portions of its facilities footprint and travel reduction, are likely to have boosted the bottom line in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for FFIV this earnings 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, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.01 per share) and the Zacks Consensus Estimate ($2.97 per share), is +1.43%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: FFIV carries a Zacks Rank #3 at present.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks’ shares have gained 47.2% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
AppleAAPL has an Earnings ESP of +3.23% and carries a Zacks Rank #2 (Buy) at present. Shares of AAPL have gained 17% year to date. The company is set to report third-quarter fiscal 2024 results on Aug 1.
The Zacks Consensus Estimate for AAPL’s third-quarter 2024 earnings has been revised upward by a penny to $1.33 over the past 60 days and indicates an improvement of 5.6% from the year-ago quarter. The consensus mark for revenues is pegged at $83.8 billion, indicating a 2.4% increase from the year-ago quarter.
Apple (AAPL) has an Earnings ESP of +3.23% and carries a Zacks Rank #2 (Buy) at present. Shares of AAPL have gained 17% year to date. The company is set to report third-quarter fiscal 2024 results on Aug 1.
The Zacks Consensus Estimate for AAPL’s third-quarter 2024 earnings has been revised upward by a penny to $1.33 over the past 60 days and indicates an improvement of 5.6% from the year-ago quarter. The consensus mark for revenues is pegged at $83.8 billion, indicating a 2.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 39.1% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 40.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Apple (AAPL) shares have gained 17% year to date. AAPL is set to report third-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for AAPL’s third-quarter 2024 earnings has been revised upward by a penny per share to $1.33 over the past 60 days and indicates an improvement of approximately 5.6% from the year-ago quarter’s earnings of $3.23. The consensus mark for revenues is pegged at $83.8 billion, indicating a 2.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 36.8% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar
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Is a Beat in the Cards for F5 (FFIV) This Earnings Season?
F5, Inc. (FFIV - Free Report) is likely to beat expectations when it reports third-quarter fiscal 2024 results after market close on Jul 29.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.97 per share, indicating a decline of 7.5% from the year-ago quarter’s reported figure. The consensus mark for revenues is pinned at $686.6 million, suggesting a 2.3% decrease from the year-ago quarter.
FFIV surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.8%.
In the last reported quarter, FFIV’s non-GAAP earnings of $2.91 per share beat the Zacks Consensus Estimate of $2.88. However, revenues of $681 million for the fiscal second quarter missed the consensus mark of $686.9 million.
Let’s see how things have shaped up for the upcoming announcement.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
The persistent macroeconomic uncertainty and its impact on customer spending are likely to have affected FFIV’s fiscal third-quarter revenues, especially the Product segment, which comprises Software and Systems sub-divisions. Our estimate of $304.5 million for the Product segment’s revenues indicates a year-over-year decline of 7.2%.
In the to-be-reported quarter, the Product division’s revenues are likely to have been hurt by the softened demand for its Systems products. Our estimate of $137 million for Systems’ revenues indicates an 11.4% year-over-year decrease.
Nevertheless, the FFIV Product segment’s fiscal third-quarter performance is likely to have been aided by the recovering demand for its software solutions, which had been hurt by IT budget cuts amid lingering macroeconomic uncertainties. In the second quarter of 2024, FFIV’s Software revenues increased 28% year over year. The growth in F5’s Software revenues has continued in the past few quarters. This trend is likely to have continued in the to-be-reported quarter. Our estimate for Software’s third-quarter revenues is pegged at $167.5 million.
The acceleration in BIG-IP and NGINX subscription software deals is expected to have remained a major growth driver in the to-be-reported quarter. BIG-IP’s data point performance, automation capabilities and the lower cost of ownership are likely to have helped F5 win multiple deals in the fiscal third quarter. Moreover, FFIV is anticipated to have witnessed strong demand for its NGINX subscription as large enterprises continue to adopt the solution for their cloud and Kubernetes workloads.
Additionally, the company’s cost-saving initiatives, which include headcount reduction, eliminating portions of its facilities footprint and travel reduction, are likely to have boosted the bottom line in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for FFIV this earnings 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, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.01 per share) and the Zacks Consensus Estimate ($2.97 per share), is +1.43%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: FFIV carries a Zacks Rank #3 at present.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 47.2% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Apple AAPL has an Earnings ESP of +3.23% and carries a Zacks Rank #2 (Buy) at present. Shares of AAPL have gained 17% year to date. The company is set to report third-quarter fiscal 2024 results on Aug 1.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 39.1% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Other Stocks With Favorable Combination