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Based in Seattle, Washington, F5, Inc. (FFIV) is a leading provider of multi-cloud application services and security solutions, serving a diverse range of industries globally. With a market cap of $9.99 billion, F5 is renowned for its comprehensive product suite that enhances application performance, security, and availability. The company is set to announce its fiscal Q3 earnings results on Monday, Jul. 22.
Ahead of the event, analysts expect FFIV to report a profit of $2.23 per share, down 9.4% from $2.46 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $2.20 per share for the last reported quarter surpassed the consensus estimate by 3.3%. While revenue declined year over year due to cautious customer spending and flat IT budgets, effective cost management contributed to F5’s earnings beat.
For fiscal 2024, analysts expect FFIV to report EPS of $9.64, up 13.8% from $8.47 in fiscal 2023.
FFIV stock is down 4.7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.1% gains and the Technology Select Sector SPDR Fund’s (XLK) 20.6% returns over the same time frame.
F5 reported fiscal second-quarter revenue of $681.4 million on Apr. 29, which fell short of the $686.9 million forecast by analysts. For the current quarter ending in June, F5 anticipates revenue ranging from $675 million to $695 million. The stock gained marginally on the earnings release day but declined 9.2% the following day.
The consensus opinion on FFIV stock is cautious, with an overall “Hold” rating. Out of 13 analysts covering the stock, one advises a “Moderate Buy” rating, 11 suggest a “Hold” rating, and one recommends a “Moderate Sell.” FFIV's average analyst price target is $184.30, indicating a potential upside of 8.1% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
