Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is F5 Networks (FFIV) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. F5 Networks is one of 620 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector ...

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]

F5 Networks' (NASDAQ: FFIV ) business appears to have gained some momentum over the past few quarters, with System demand stabilizing and Software growth remaining robust, supported by AI use cases. F5's improved margins are also impressive given the company's investments in growth initiatives. Richard Durant is the leader of Narweena, an asset manager focused on finding market dislocations that are the result of a poor understanding of a businesses long-term prospects. Narweena believes that excess risk ad ...

I recommended a buy rating for F5, Inc. (NASDAQ: FFIV ) when I wrote about it on 30th January this year, as I expected growth to start inflecting upwards because enterprise spending is recovering, and that the business I consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of comp ...

Financial Data and Key Metrics Changes - F5 reported record Q4 revenues of $747 million, a 6% year-over-year increase, exceeding guidance [8] - Non-GAAP EPS for Q4 was $3.67, with EBIT of $0.17 above guidance, indicating improved operating margins [9] - For FY '24, total revenue was $2.82 billion, slightly up from FY '23, with software revenue growing 11% [48][50] - Recurring revenue increased to $2.1 billion, representing 76% of total revenue, up from 52% in FY '17 [13] Business Line Data and Key Metrics Changes - Software revenue in Q4 was $228 million, a 19% increase year-over-year, with subscription-based software revenue at $204 million, growing 23% [39] - Systems revenue totaled $130 million, down 3% year-over-year, but demand improved over the quarter [39] - For FY '24, software revenue was $735 million, accounting for 58% of product revenue, with subscriptions making up 85% of software revenue [50] Market Data and Key Metrics Changes - Revenue from the Americas grew 9% year-over-year, representing 58% of total revenue, while EMEA grew 4% and APAC declined 3% [41] - Enterprise customers accounted for 72% of Q4 product bookings, with government customers at 18% and service providers at 10% [42] Company Strategy and Development Direction - F5 is transitioning from a hardware-centric model to a security and software leader in hybrid multi-cloud environments, expanding its total addressable market [11] - The company aims to leverage its software renewal opportunities and growing pipeline to accelerate revenue growth in FY '25, projecting 4% to 5% growth [14] - F5 is focusing on app and API security, simplification, and standardization to address the complexities of hybrid multi-cloud architectures [23][25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in FY '25 growth prospects, driven by strong industry trends and effective go-to-market strategies [15][72] - The emergence of AI and hybrid multi-cloud architectures is expected to create new opportunities for F5, with a focus on optimizing AI workloads [29][35] - Management noted that while AI adoption is still early, F5 is well-positioned to capitalize on future opportunities in this space [88] Other Important Information - F5's Board of Directors authorized an additional $1 billion for stock repurchase, bringing the total available to $1.4 billion [47] - The company ended Q4 with approximately 6,560 employees [48] Q&A Session Summary Question: Composition of software revenue growth - Management indicated that strong software performance was driven by expansion within the existing customer base and new business activity from delayed projects [77][78] Question: Software growth guidance and AI adoption - Management explained that the guidance reflects macro trends in hybrid multi-cloud adoption, with expectations for continued growth despite early AI adoption [82][84] Question: Systems revenue outlook - Management noted that systems revenue growth is attributed to both competitive replacements and tech refreshes as customers gain budget certainty [92][93] Question: Subscription revenue dynamics - Management clarified that any implied deceleration in subscription revenue is due to the timing of renewals, which are back-end loaded [97][98] Question: BIG-IP Next for Kubernetes customer base - Management highlighted that the solution targets both service providers and enterprises building AI factories, with significant potential for future growth [105][106]

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 ...

Q4 FY24 Earnings Release Page 1 of 5 | --- | |-------------------| | | | Contacts | | Investors | | Suzanne DuLong | | +1 (206) 272-7049 | | | | s.dulong@f5.com | | Media | | Rob Gruening | | +1 (206) 272-6208 | | r.gruening@f5.com | F5 Reports Fourth Quarter and Fiscal Year 2024 Results with Strong Software Revenue Growth and Double-Digit Fiscal Year 2024 EPS Growth; Guides to Revenue Acceleration in Fiscal Year 2025; Board Authorizes Additional $1 Billion for Share Repurchases SEATTLE, WA - October 28, 20 ...

F5, Inc. FFIV will release earnings results for its fourth quarter, after the closing bell on Monday, Oct. 28. Read This Next: Analysts expect the Seattle, Washington-based bank to report quarterly earnings at $3.45 per share, down from $3.50 per share in the year-ago period. F5 projects to report revenue of $730.39 million for the recent quarter, compared to $706.97 million a year earlier, according to data from Benzinga Pro. F5 recently disclosed the launch of BIG-IP Next for Kubernetes, an AI-driven appl ...

F5 Inc. (FFIV) is scheduled to report fourth-quarter fiscal 2024 earnings after market close on Oct. 28, 2024. For the fourth quarter of fiscal 2024, F5 projects non-GAAP earnings per share (EPS) in the range of $3.38-$3.50 (midpoint of $3.44). The Zacks Consensus Estimate for the same is pegged at $3.45, suggesting a year-over-year decline of 1.4%. The figure has remained unchanged for the past seven days. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. FFIV projects its fourth-qu ...