F5 Networks Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of networking equipment specialist F5 Networks (NAS: FFIV) climbed 12% today after the company's quarterly results topped analyst expectations.
So what: A recent profit warning from rival Juniper Networks didn't exactly bode well for F5's first-quarter results, but a better-than-expected bottom line -- adjusted EPS of $1.03 versus the consensus of $1.01 -- is quickly easing concerns about the global economy. In fact, strong sales in Asia, Pacific Japan, and especially North America drove the profit jump.
Now what: Don't let today's pop keep you from looking into F5. Management now sees adjusted EPS of $1.05-$1.07 on revenue of $332 million-$337 million for the current quarter, which was also slightly better than Wall Street estimates. More importantly, with the smartphone and tablet boom not expected to slow anytime soon, the long-term demand for F5's bandwidth management solutions looks healthy.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.
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