F5 Networks Beats Estimates Yet Again

F5 Networks (NAS: FFIV) reported earnings on Jan. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), F5 Networks beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share expanded significantly.

Gross margins grew, operating margins grew, net margins contracted.

Revenue details
F5 Networks booked revenue of $322 million. The 33 analysts polled by S&P Capital IQ looked for a top line of $319 million. Sales were 20% higher than the prior-year quarter's $269 million


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.03. The 33 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share on the same basis. GAAP EPS of $0.83 for Q1 were 22% higher than the prior-year quarter's $0.68 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 82.8%, 100 basis points better than the prior-year quarter. Operating margin was 30.9%, 120 basis points better than the prior-year quarter. Net margin was 20.6%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $331 million. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $1.4 billion. The average EPS estimate is $4.41.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 676 members out of 733 rating the stock outperform, and 57 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 215 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 $115.88.

At the time this article was published Seth Jayson had 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. 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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