Group 1 - F5 Networks is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive earnings outlook with a 0.6% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, F5 Networks has achieved a return of 34.3%, outperforming the Computer and Technology sector average return of 28.5% [4] - F5 Networks is part of the Internet - Software industry, which has an average gain of 26.5% this year, further highlighting its strong performance relative to its peers [6] Group 2 - The Computer and Technology group consists of 620 companies and is currently ranked 5 within the Zacks Sector Rank [2] - Another notable performer in the same sector is Monday.com, which has returned 61.1% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - Investors are encouraged to monitor both F5 Networks and Monday.com for continued strong performance in the market [7]

Core Insights - F5 reported strong Q4 results with revenue of $747 million, exceeding consensus estimates, and adjusted earnings of $3.67 per share, also above expectations [1][2] - The company anticipates fiscal 2025 sales growth of 4% to 5% and adjusted earnings growth of 5% to 7%, alongside a $1 billion share repurchase program [3] Financial Performance - Q4 revenue of $747 million represents a 5.6% year-over-year growth, driven by a 19% increase in software sales [2] - Adjusted operating margin improved by 50 basis points year-over-year to 34.4%, contributing to a 5% year-over-year growth in adjusted earnings [2] Stock Performance and Valuation - Following the positive quarterly results, F5 stock rose 10%, with a current valuation estimated at $245 per share, close to its market price of $240 [4] - F5 stock has outperformed the S&P 500 index with a 35% gain this year compared to 22% for the index [5] Historical Stock Volatility - F5 stock has shown significant volatility in annual returns, with 39% in 2021, -41% in 2022, and 25% in 2023, contrasting with the more stable performance of the Trefis High Quality Portfolio [5]

Group 1 - The core recommendation is a buy rating for F5, Inc. (NASDAQ: FFIV) based on expected growth due to recovering enterprise spending [1] - The business is considered an investment ideal due to its operation in a sector projected to experience structural growth exceeding GDP growth over the next 5-10 years [1] - F5, Inc. benefits from sustainable competitive advantages that lead to attractive unit economics [1] Group 2 - The company is positioned in the hands of competent, ethical, and long-term thinkers, which is crucial for its success [1] - The valuation of F5, Inc. is deemed fair, supporting the buy recommendation [1]

Q4 & FY24 Results PERIOD ENDING September 30, 2024 Published October 28, 2024 Forward-looking statements This presentation contains forward-looking statements including, among other things, statements regarding F5's position as a security and software leader in today's multicloud world, F5's role beyond the data center, F5's value to customers, the Company's future financial performance including revenue, earnings growth, future customer demand, and the performance and benefits of the Company's products. Th ...

F5 Networks (FFIV) came out with quarterly earnings of $3.67 per share, beating the Zacks Consensus Estimate of $3.45 per share. This compares to earnings of $3.50 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 6.38%. A quarter ago, it was expected that this computer networking company would post earnings of $2.97 per share when it actually produced earnings of $3.36, delivering a surprise of 13.13%. Over the last four quarte ...

Core Viewpoint - F5, Inc. is set to release its fourth-quarter earnings on October 28, with analysts projecting a slight decline in earnings per share compared to the previous year, while revenue is expected to increase [1] Financial Performance - Analysts expect F5 to report earnings of $3.45 per share, down from $3.50 per share in the same quarter last year [1] - Projected revenue for the recent quarter is $730.39 million, an increase from $706.97 million a year earlier [1] Product Development - F5 has launched BIG-IP Next for Kubernetes, an AI-driven application delivery and security solution [1] Stock Performance - F5 shares increased by 1.6%, closing at $216.87 on the previous Friday [1] Analyst Ratings - Goldman Sachs analyst Michael Ng maintained a Neutral rating and raised the price target from $185 to $212 [1] - Evercore ISI Group analyst Amit Daryanani maintained an In-Line rating and increased the price target from $180 to $210 [1] - RBC Capital analyst Matthew Hedberg maintained a Sector Perform rating and raised the price target from $182 to $205 [1] - JP Morgan analyst Samik Chatterjee maintained a Neutral rating and increased the price target from $210 to $215 [1] - Barclays analyst Tim Long maintained an Equal-Weight rating and raised the price target from $189 to $214 [1]

Core Viewpoint - F5 Inc. (FFIV) is set to report its fourth-quarter fiscal 2024 earnings on October 28, 2024, with projected non-GAAP EPS and revenues indicating a slight decline in earnings but moderate revenue growth year-over-year [1][2]. Financial Projections - F5 projects non-GAAP EPS in the range of $3.38-$3.50, with a midpoint of $3.44, reflecting a year-over-year decline of 1.4% compared to the Zacks Consensus Estimate of $3.45 [1]. - The company anticipates non-GAAP revenues between $720-$740 million, with the Zacks Consensus Estimate at $729.60 million, indicating a year-over-year growth of 3.2% [1]. Product Segment Performance - The performance of F5's Product segment is expected to benefit from recovering demand for software solutions, despite IT budget cuts due to macroeconomic uncertainties [2]. - Software revenues are estimated at $208.3 million, continuing the growth trend observed in previous quarters [2]. - The acceleration in BIG-IP and NGINX subscription software deals is anticipated to be a significant growth driver, with strong demand from large enterprises for cloud and Kubernetes workloads [2]. Cost-Saving Initiatives - F5's cost-saving measures, including headcount reduction and travel cuts, are likely to positively impact the bottom line [3]. - However, macroeconomic uncertainties may have negatively affected revenues, particularly in the Systems subdivision, which saw a 16% revenue decline in the previous quarter [3]. Revenue Estimates - The estimated revenue for the Systems division is $122.7 million, indicating a year-over-year decline of 8.6% [3]. - Overall, the Product division's revenues are projected to increase by 1.7% year-over-year, with an estimate of $331 million [3]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for F5, as it has a Zacks Rank of 2 but an Earnings ESP of -0.65% [4].

Core Viewpoint - F5 Networks (FFIV) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended September 2024, with the earnings report set to be released on October 28, 2024 [1] Group 1: Earnings Expectations - The consensus estimate for F5's quarterly earnings is $3.45 per share, reflecting a year-over-year decrease of 1.4% [2] - Expected revenues for the quarter are $729.6 million, which represents a 3.2% increase from the same quarter last year [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 0.44% higher in the last 30 days, indicating a slight positive reassessment by analysts [3] - The Most Accurate Estimate for F5 is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.65%, suggesting a bearish outlook from analysts [6] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5] - F5 currently holds a Zacks Rank of 2, which complicates the prediction of an earnings beat despite the negative Earnings ESP [7] Group 4: Historical Performance - In the last reported quarter, F5 exceeded the expected earnings of $2.97 per share by delivering $3.36, resulting in a surprise of +13.13% [8] - Over the past four quarters, F5 has consistently beaten consensus EPS estimates [8] Group 5: Market Reaction Considerations - An earnings beat or miss may not solely dictate stock price movements, as other factors can influence investor sentiment [9] - F5 does not currently appear to be a compelling candidate for an earnings beat, and investors should consider additional factors before making decisions [9]

Core View - F5 Networks (FFIV) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive earnings outlook and potential for stock price appreciation [1][3][10] Earnings Estimate Revisions - The Zacks rating system relies on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6] - F5's earnings estimates have been steadily rising, with the Zacks Consensus Estimate increasing by 5.6% over the past three months [8] - F5 is expected to earn $13.16 per share for the fiscal year ending September 2024, representing a year-over-year change of 12.5% [8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on four factors related to earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - F5's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating superior earnings estimate revisions and potential for market-beating returns [9][10] Institutional Influence - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and changes in these estimates can lead to significant stock price movements [4] - The improvement in F5's underlying business, reflected in rising earnings estimates, is likely to attract investor interest and push the stock higher [5]

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