We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the fourth quarter of fiscal 2024, F5 projects non-GAAP earnings per share (EPS) in the range of $3.38-$3.50 (midpoint of $3.44). The Zacks Consensus Estimate for the same is pegged at $3.45, suggesting a year-over-year decline of 1.4%. The figure has remained unchanged for the past seven days.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
FFIV projects its fourth-quarter fiscal 2024 non-GAAP revenues in the range of $720-$740 million. The Zacks Consensus Estimate for the same is pegged at $729.60 billion, suggesting year-over-year growth of 3.2%.
FFIV’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 9%.
FFIV’s Product segment performance in the fiscal fourth quarter is likely to have been aided by the recovering demand for its software solutions, offset by IT budget cuts amid lingering macroeconomic uncertainties. 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 revenues is pegged at $208.3 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 fourth 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.
However, the persistent macroeconomic uncertainty and its impact on customer spending are expected to have affected FFIV’s fiscal fourth-quarter revenues, especially the Systems sub-divisions of the Product segment. The Systems subdivision registered a decline of 16% in revenues in the third quarter of fiscal 2024. This trend is likely to have continued in the fiscal fourth quarter as well. Our estimate of $122.7 million for the System division’s revenues indicates a year-over-year decline of 8.6%.
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, offset by the growth in the Software division. Our estimate of $331 million for Product revenues indicates a 1.7% year-over-year increase.
What Our Model Says About FFIV
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 FFIV currently carries a Zacks Rank #2, it has an Earnings ESP of -0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
F5 Gears Up to Report Q4 Earnings: What's in the Offing?
F5 Inc. (FFIV - Free Report) is scheduled to report fourth-quarter fiscal 2024 earnings after market close on Oct. 28, 2024.
For the fourth quarter of fiscal 2024, F5 projects non-GAAP earnings per share (EPS) in the range of $3.38-$3.50 (midpoint of $3.44). The Zacks Consensus Estimate for the same is pegged at $3.45, suggesting a year-over-year decline of 1.4%. The figure has remained unchanged for the past seven days.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
FFIV projects its fourth-quarter fiscal 2024 non-GAAP revenues in the range of $720-$740 million. The Zacks Consensus Estimate for the same is pegged at $729.60 billion, suggesting year-over-year growth of 3.2%.
FFIV’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 9%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider for FFIV
FFIV’s Product segment performance in the fiscal fourth quarter is likely to have been aided by the recovering demand for its software solutions, offset by IT budget cuts amid lingering macroeconomic uncertainties. 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 revenues is pegged at $208.3 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 fourth 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.
However, the persistent macroeconomic uncertainty and its impact on customer spending are expected to have affected FFIV’s fiscal fourth-quarter revenues, especially the Systems sub-divisions of the Product segment. The Systems subdivision registered a decline of 16% in revenues in the third quarter of fiscal 2024. This trend is likely to have continued in the fiscal fourth quarter as well. Our estimate of $122.7 million for the System division’s revenues indicates a year-over-year decline of 8.6%.
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, offset by the growth in the Software division. Our estimate of $331 million for Product revenues indicates a 1.7% year-over-year increase.
What Our Model Says About FFIV
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 FFIV currently carries a Zacks Rank #2, it has an Earnings ESP of -0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Reddit (RDDT - Free Report) has an Earnings ESP of +37.55% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reddit shares have surged 55.9% year to date. RDDT is slated to report third-quarter 2024 results on Oct. 29.
Garmin (GRMN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 2 at present.
Carrier Global shares have gained 26% year to date. GRMN is scheduled to report third-quarter 2024 results on Oct. 30.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +2.86% and carries a Zacks Rank #3 at present.
Cognizant shares have lost 0.8% year to date. Cognizant is slated to report third-quarter 2024 results on Oct. 30.