Can F5 Networks Meet These Numbers?

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F5 Networks (NAS: FFIV) is expected to report Q3 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict F5 Networks' revenues will improve 21.5% and EPS will improve 17.5%.

The average estimate for revenue is $353.2 million. On the bottom line, the average EPS estimate is $1.14.


Revenue details
Last quarter, F5 Networks booked revenue of $339.6 million. GAAP reported sales were 22% higher than the prior-year quarter's $277.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.08. GAAP EPS of $0.86 for Q2 were 26% higher than the prior-year quarter's $0.68 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 83.0%, 130 basis points better than the prior-year quarter. Operating margin was 30.8%, 80 basis points better than the prior-year quarter. Net margin was 20.2%, 20 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.39 billion. The average EPS estimate is $4.51.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 690 members out of 749 rating the stock outperform, and 61 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give F5 Networks a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on F5 Networks is outperform, with an average price target of $131.38.

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The article Can F5 Networks Meet These Numbers? originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of F5 Networks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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