F5 Networks Earnings: What To Look For From FFIV

Radek Strnad /
2022/07/24 7:36 am EDT
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Network application delivery and security specialist F5 (NASDAQ:FFIV) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter F5 Networks reported revenues of $634.2 million, down 1.71% year on year, in line with analyst expectations. It was a weak quarter for the company, with a slow revenue growth and an underwhelming revenue guidance for the next quarter.

Is F5 Networks buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting F5 Networks's revenue to grow 2.5% year on year to $667.8 million, slowing down from the 11.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.23 per share.

F5 Networks Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.2%.

With F5 Networks being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the whole sector have been hit hard on fears of higher interest rates, with stocks down on average 2.74% over the last month. F5 Networks is down 1.01% during the same time, and is heading into the earnings with analyst price target of $197.63, compared to share price of $154.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.