Network application delivery and security specialist F5 (NASDAQ:FFIV) will be reporting earnings tomorrow after market close. Here’s what to look for.
F5 beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $695.5 million, down 1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Is F5 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting F5’s revenue to grow 3.3% year on year to $730.6 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $3.45 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. F5 has missed Wall Street’s revenue estimates twice over the last two years.
With F5 being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for software development stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.2% on average over the last month. F5 is down 1.5% during the same time and is heading into earnings with an average analyst price target of $206.26 (compared to the current share price of $216.86).
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