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F5 Networks, Inc. (FFIV) is scheduled to report its Q3 2012 results on July 18, 2012, after the bell. The street expects EPS and revenue of $1.14 and $353M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from FFIV and the news from its closest competitors.

F5 Networks, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.09 EPS, beating analyst estimates of $1.07.

F5 Networks, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.14 based on 39 analysts' estimates, up from $0.97 a year ago. Revenue estimates are $353M, up from $290.71M a year ago. The median target price by analysts for the stock is $135.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 2, 2012, Northland Securities reiterated Market Perform rating for the company.
  • On June 21, 2012, MKM Partners reiterated Buy rating for the company.
  • On June 6, 2012, Needham initiated Buy rating for the company.
  • On April 23, 2012, Northland Securities initiated Market Perform rating for the company.
  • On April 19, 2012, UBS reiterated Neutral rating for the company.
  • On April 19, 2012, ISI Group reiterated Buy rating for the company.
  • On April 18, 2012, Wunderlich upgraded the company from Hold to Buy.
  • On April 18, 2012, Capstone Investments upgraded the company from Hold to Buy.
  • On April 16, 2012, Mizuho reiterated Buy rating for the company.
  • On April 8, 2012, Stifel Nicolaus downgraded the company from Buy to Hold.
  • On April 3, 2012, Oppenheimer reiterated Outperform rating for the company.
  • On March 28, 2012, Capstone Investments initiated Hold rating for the company.
  • On March 20, 2012, McAdams Wright Ragen downgraded the company from Buy to Hold.
  • On March 15, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On March 5, 2012, UBS reiterated Neutral rating for the company.
  • On January 19, 2012, Wunderlich reiterated Hold rating for the company.
  • On January 19, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On January 19, 2012, Barclays Capital reiterated Overweight rating for the company.

Latest News

  • On April 18, 2012, F5 Networks, Inc. announced that for the third quarter of 2012, it expects revenue to be in the range of $350-$355 million, net income to be in the range of $70.7-$72.3 million, Non-GAAP net income excluding stock-based compensation expense and amortization of purchased intangible assets to be in the range of $89.9-$91.5 million, GAAP earnings per diluted share (EPS) to be in the range of $0.88-$0.90 and Non GAAP earnings per diluted share to be in the range of $1.12-$1.14. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $353 million, net income of $91.49 million and EPS of $1.14 for the third quarter of 2012.
  • On February 22, 2012, F5 Networks, Inc. announced that it has completed the acquisition of Traffix Systems, the provider of 4G Diameter signaling products for telecommunications service providers.
  • On February 20, 2012, F5 Networks, Inc. announced that it has agreed to acquire Traffix Systems, the provider of 4G Diameter signaling products for telecommunications service providers.
  • On January 18, 2012, F5 Networks, Inc. announced that for the second quarter of 2012, it expects revenue of $332-$337 million, net income to be in the range of $84.5-$86.1 million and Non GAAP net income per share diluted is expected to be between $1.05-$1.07. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $330 million, net income of $85.1 million and EPS of $1.05 for the second quarter of 2012.

Competitors

F5 Networks, Inc. operates in Application Software industry. The company could be compared to Akamai Technologies, Inc. (AKAM), Acme Packet, Inc. (APKT), Cisco Systems, Inc. (CSCO), Citrix Systems, Inc. (CTXS), and Juniper Networks, Inc. (JNPR). Below is the table comparison of the most important ratios between these companies and the industry.

F5 Networks, Inc. key ratio comparison with direct competitors

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)FFIV Chart

FFIV data by YCharts

Competitors' Latest Development

  • On July 12, 2012, Acme Packet Inc announced that its Board of Directors has authorized the repurchase of up to $200 million of the Company's common stock over the next twelve months.
  • On July 11, 2012, Juniper Networks, Inc. announced that Telefonica Digital has selected Juniper Networks Junos Pulse Mobile Security Suite to create a branded mobile security service for its consumer customer base across Europe.
  • On July 10, 2012, Juniper Networks, Inc. announced that NTT Communications has integrated Juniper Networks security and remote access technologies into Mobile Connect, a new Bring Your Own Device (BYOD) security service launched to address corporate customers' demand for enhanced mobile network access.
  • On July 9, 2012, Citrix Systems, Inc. announced that it has closed the acquisition of Bytemobile, provider of data and video optimization solutions for mobile network operators.
  • On June 27, 2012, QUALCOMM Inc. and Akamai Technologies, Inc. announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
  • On June 21, 2012, Acme Packet Inc announced that Maaii, Limited, an integrated communications application service provider based in Hong Kong, has deployed Acme Packet's Net-Net Session Director session border controllers (SBCs) to support its global over-the-top (OTT) communications service.
  • On June 15, 2012, Cisco Systems Inc announced that it has declared a quarterly dividend of $0.08 per common share to be paid on July 25, 2012, to all shareholders of record as of the close of business on July 5, 2012.
  • On June 11, 2012, Juniper Networks, Inc. announced a new stock repurchase program which enables the Company to purchase up to $1 billion of the Company's common stock. This new authorization is in addition to the $1 billion stock repurchase program approved in 2010.
  • On June 7, 2012, Citrix Systems, Inc. announced that it has signed a definitive agreement to acquire privately held Bytemobile, provider of data and video optimization solutions for mobile network operators.
  • On June 4, 2012, Reuters reported that TiVo Inc countersued Cisco Systems, Inc. in a court over alleged infringement of four patents relating to digital video recorder (DVR) technology, days after Cisco filed a lawsuit against TiVo to void those same patents.
  • On May 23, 2012, Acme Packet Inc announced that Bouygues Telecom, a fixed and mobile service provider in France, is deploying Acme Packet Net-Net Session Director session border controllers (SBCs) in its IP Multimedia Subsystem (IMS) network, supplied and integrated by Alcatel-Lucent.
  • On May 22, 2012, Nice Systems Ltd announced jointly with Acme Packet Inc, the industry's first available solution for interactive session recording based on the Internet Engineering Task Force's (IETF) Internet draft of the standardized Session Recording Protocol (SIPREC).
  • On May 9, 2012, Cisco Systems Inc announced that for the fourth quarter of 2012, it expects revenue growth to be in the range of 2% to 5% on a year-over-year basis, non-GAAP earnings per share is expected to be in the range of $0.44 to $0.46 per share, up approximately 10% to 15% year-over-year and anticipates GAAP earnings will be $0.07 to $0.11 per share lower than non-GAAP EPS. This range includes the Company's typical differences as well as an impact of up to $0.02 as a result of the Company's anticipated restructuring charges.
  • On May 8, 2012, Acme Packet, Inc. announced that WIND Mobile (WIND), an aggressively growing wireless service provider in Canada, selected the Acme Packet Net-Net Session Director session border controllers to securely connect WIND's voice over internet protocol (VoIP) core network with other service providers.
  • On May 2, 2012, Acme Packet Inc announced that for fiscal 2012, it expects revenue growth to be approximately 10% and non-GAAP earnings per share to be $0.91-$0.95. The Company reported revenue of $307.32 million in fiscal 2011.
  • On May 1, 2012, Cisco Systems Inc announced that it has completed the acquisition of privately held ClearAccess, a Vancouver, Wash. based company that provides TR-069 standards based software to service providers for the provisioning and management of residential and mobile devices.
  • On April 26, 2012, Acme Packet Inc announced that it has acquired privately held IPTEGO GmbH, an IP communications network management software company, for approximately $21 million in cash.
  • On April 26, 2012, VirnetX Holding Corp announced that the United States District Court for the Eastern District of Texas, Tyler Division, issued its patent claim construction, or Markman Order in the ongoing patent infringement action between VirnetX Inc. and Cisco, Apple, NEC and Aastra.
  • On April 25, 2012, Akamai Technologies, Inc. announced that for second quarter of 2012, it expects revenue to be in the range of $322-$330 million and fully taxed normalized earnings per share in the range of $0.36-$0.38. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $324 million and EPS of $0.37 for second quarter of 2012.
  • On April 25, 2012, Akamai Technologies, Inc. announced that President and CEO Paul Sagan plans to transition out of his role by the end of 2013. Mr. Sagan has committed to continue leading the Company until his successor is named, and he intends to remain directly involved with Akamai thereafter to ensure a successful leadership transition.
  • On April 25, 2012, Citrix Systems, Inc. announced that for the second quarter of 2012, it expects net revenue to be in the range of $605-$615 million, GAAP diluted earnings per share to be in the range of $0.34 to $0.37 and Non-GAAP diluted earnings per share to be in the range of $0.58 to $0.59, excluding $0.11 related to the effects of amortization of intangible assets primarily related to business combinations, $0.19 related to the effects of stock-based compensation expenses, and $(0.05) to $(0.09) for the tax effects related to these items.
  • On April 24, 2012, Juniper Networks, Inc. announced that for the second quarter of 2012, it expects revenue to be in the range of $1.03-$1.06 billion and non-GAAP net income per share to be in the range of $0.15-$0.17 on a diluted basis.
  • On April 19, 2012, Comptel Oyj (Comptel) announced that Comptel Corporation and Cisco Systems Inc. (Cisco) have settled the dispute concerning Comptel's use of a certain sub-set of Axioss software that was sold to Cisco and simultaneously licensed back to Comptel for use in the current release of Comptel Fulfillment.
  • On April 17, 2012, Akamai Technologies, Inc. announced that it has been selected by Fiat Group Automobiles as partner to improve the performance of both its corporate and brand sites and to optimize the navigation experience from desktop and mobile devices.

Technical Overview


The stock has a market capitalization of $7.42B and is currently trading at $90.97 with a 52 week range of $69.01 - $139.46. The stock's year-to-date performance has been -11.92%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: F5 Networks: Earnings Preview