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.
F5 Networks (FFIV) to Report Q2 Earnings: What to Expect?
Read MoreHide Full Article
F5 Networks (FFIV - Free Report) is set to report second-quarter fiscal 2020 results on Apr 27.
For second-quarter fiscal 2020, F5 Networks expects revenues of $580-$590 million (mid-point $585 million). The Zacks Consensus Estimate for revenues is pegged at $569.9 million, suggesting growth of 4.6% from the year-ago reported figure.
The company anticipates non-GAAP earnings of $2.14-$2.16 per share. The Zacks Consensus Estimate is pegged at $2.04 per share, down two cents over the past week. The consensus mark indicates a year-over-year decline of 20.6%.
Notably, the company’s earnings surpassed estimates in three of the trailing four quarters and missed in the other, the average positive surprise being 1.3%.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
The coronavirus outbreak, which continues to disrupt technology supply chains and logistics services across the globe, is likely to have affected F5 Networks’ fiscal second-quarter performance. Nonetheless, the company’s efficient inventory management is expected to have limited the impact of the pandemic.
In an Apr 20 update, F5 Networks noted that it has been able to maintain the flow of spare parts to depots and customers across the globe as its products are part of the essential category list. It has also managed to keep the required inventory level at 99% of all its depots globally.
Additionally, the work-from-home wave globally is bolstering demand for secured communication networks. We expect this new trend to also have positively impacted F5 Networks’ quarterly performance
F5 Networks is also likely to have benefited from its focus on transitioning the business to a software-driven model. Increasing demand for multi-cloud application services is expected to have been a key driver.
Rising traction of the Enterprise License Agreement (ELA) and annual subscriptions by customers are likely to have boosted software growth. This, in turn, is anticipated to have aided product revenue growth. The Zacks Consensus Estimate for product revenues at $257 million, indicating 8% growth from the year-ago quarter reported figure.
Moreover, the top line is likely to have benefited from significant contributions from NGINX, which was acquired by F5 Networks in the third quarter of fiscal 2019.
However, the company’s results will likely reflect its continued hardware-to-software transition. A slowdown in the company’s highly profitable traditional systems business is assumed to have kept the margin slightly stressed as well.
What Our Model Says
Our proven model does not predict an earnings beat for F5 Networks this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
F5 Networks currently carries a Zacks Rank of 4 and has an Earnings ESP of -2.11%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
ServiceNow, Inc. (NOW - Free Report) has an Earnings ESP of +1.47% and currently carries a Zacks Rank of 3.
EPAM Systems, Inc. (EPAM - Free Report) has an Earnings ESP of +0.55% and holds a Zacks Rank of 3 currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
F5 Networks (FFIV) to Report Q2 Earnings: What to Expect?
F5 Networks (FFIV - Free Report) is set to report second-quarter fiscal 2020 results on Apr 27.
For second-quarter fiscal 2020, F5 Networks expects revenues of $580-$590 million (mid-point $585 million). The Zacks Consensus Estimate for revenues is pegged at $569.9 million, suggesting growth of 4.6% from the year-ago reported figure.
The company anticipates non-GAAP earnings of $2.14-$2.16 per share. The Zacks Consensus Estimate is pegged at $2.04 per share, down two cents over the past week. The consensus mark indicates a year-over-year decline of 20.6%.
F5 Networks, Inc. Price and Consensus
F5 Networks, Inc. price-consensus-chart | F5 Networks, Inc. Quote
Notably, the company’s earnings surpassed estimates in three of the trailing four quarters and missed in the other, the average positive surprise being 1.3%.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
The coronavirus outbreak, which continues to disrupt technology supply chains and logistics services across the globe, is likely to have affected F5 Networks’ fiscal second-quarter performance. Nonetheless, the company’s efficient inventory management is expected to have limited the impact of the pandemic.
In an Apr 20 update, F5 Networks noted that it has been able to maintain the flow of spare parts to depots and customers across the globe as its products are part of the essential category list. It has also managed to keep the required inventory level at 99% of all its depots globally.
Additionally, the work-from-home wave globally is bolstering demand for secured communication networks. We expect this new trend to also have positively impacted F5 Networks’ quarterly performance
F5 Networks is also likely to have benefited from its focus on transitioning the business to a software-driven model. Increasing demand for multi-cloud application services is expected to have been a key driver.
Rising traction of the Enterprise License Agreement (ELA) and annual subscriptions by customers are likely to have boosted software growth. This, in turn, is anticipated to have aided product revenue growth. The Zacks Consensus Estimate for product revenues at $257 million, indicating 8% growth from the year-ago quarter reported figure.
Moreover, the top line is likely to have benefited from significant contributions from NGINX, which was acquired by F5 Networks in the third quarter of fiscal 2019.
However, the company’s results will likely reflect its continued hardware-to-software transition. A slowdown in the company’s highly profitable traditional systems business is assumed to have kept the margin slightly stressed as well.
What Our Model Says
Our proven model does not predict an earnings beat for F5 Networks this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
F5 Networks currently carries a Zacks Rank of 4 and has an Earnings ESP of -2.11%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
InterDigital, Inc. (IDCC - Free Report) has an Earnings ESP of +152% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ServiceNow, Inc. (NOW - Free Report) has an Earnings ESP of +1.47% and currently carries a Zacks Rank of 3.
EPAM Systems, Inc. (EPAM - Free Report) has an Earnings ESP of +0.55% and holds a Zacks Rank of 3 currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>