F5 Networks (FFIV) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/01/23 4:41 am EST

Network application delivery and security specialist F5 (NASDAQ:FFIV) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter F5 Networks reported revenues of $700 million, up 2.64% year on year, beating analyst revenue expectations by 1.19%. It was a weaker quarter for the company, with slow revenue growth and a decline in gross margin.

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 1.96% year on year to $700.5 million, slowing down from the 10% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.33 per share.

F5 Networks Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards 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 1.08%.

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 there has been positive sentiment among investors in the segment, with the stocks up on average 10.5% over the last month. F5 Networks is up 3.05% during the same time, and is heading into the earnings with analyst price target of $173.86, compared to share price of $145.50.

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.