F5 Networks, Inc.

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  • Wed, Jan. 20, 4:09 PM
    • F5 Networks (NASDAQ:FFIV): FQ1 EPS of $1.73 beats by $0.13.
    • Revenue of $489.5M (+5.8% Y/Y) beats by $3.99M.
    • Expects FQ2 revenue of $480M-$490M and EPS of $1.61-$1.64, below a consensus of $499.5M and $1.68.
    • Shares +2.6% after hours.
    • Press Release
    | Wed, Jan. 20, 4:09 PM | 1 Comment
  • Tue, Jan. 19, 5:35 PM
    | Tue, Jan. 19, 5:35 PM | 2 Comments
  • Fri, Jan. 15, 11:22 AM
    • Believing enterprise storage sales cycles are lengthening as companies mull cloud migrations and stating its application delivery controller (ADC) checks came back weak, Sterne Agee has downgraded F5 (FFIV -2.2%) to Neutral, and cut its target by $25 to $105.
    • Sterne: "[S]pecific F5 Networks/ADC data from our survey that continues to point to 1) a tepid market growth rate of 3-5% and 2) a moderate impact on the company's traditional ADC business ... We recognize sentiment is heavily depressed ahead of an upcoming product cycle but believe our data outlines several headwinds that will cap multiple expansion for the stock."
    • Yesterday, Barclays' Mark Moskowitz downgraded to Underweight, arguing cloud adoption is hurting F5's ADC sales, that its low-end hardware sales could be hurt by virtual (software-based) ADC adoption (ed: F5 is a major player in the virtual ADC market as well), and that the return on new security/services initiatives remains unknown.
    • Deutsche downgraded on Tuesday, while citing a longer-than-expected timeframe for security sales to ramp. Also downgrading in recent months: Nomura and William Blair/JMP.
    • Shares are lower, but not as much as the Nasdaq (down 3.1%). FQ1 results arrive on Wednesday afternoon.
    | Fri, Jan. 15, 11:22 AM
  • Tue, Jan. 12, 12:56 PM
    • Deutsche's Vijay Bhagvath is the fourth analyst to downgrade F5 (FFIV -1.8%) in the last two months: His rating for the application delivery controller/security hardware vendor has been cut to Hold, and his target lowered by $40 to $100.
    • Bhagvath sees a longer-than-expected timeline for F5's security sales to ramp via next-gen firewall, security analytics, and threat intelligence product launches, Mid-to-high single-digit total revenue growth is expected in 2016.
    • William Blair and JMP downgraded in November following F5's analyst day. Nomura downgraded in December, five days before F5 announced CEO Manny Rivelo has resigned due to personal conduct issues.
    • Shares go for 13x an FY16 (ends Sep. '16) EPS consensus of $7.02. They're about a dollar above a 52-week low of $90.81.
    | Tue, Jan. 12, 12:56 PM
  • Dec. 15, 2015, 2:13 PM
    • Markets are giving a thumbs-up to news recently-appointed F5 (NASDAQ:FFIV) CEO Manny Rivelo has resigned due to an undisclosed personal conduct issue, and will be replaced (for now at least) by long-time CEO John McAdam. The Nasdaq is up 1.3%.
    • "Management disruption increases the potential for F5 to seek a strategic buyer in 2016 concurrent with a search for a new CEO," writes Pac Crest's Brent Bracelin. RBC also thinks F5 could be an acquisition target, and notes the company has $1.2B in cash and no debt.
    • By contrast, William Blair's Jason Ader (downgraded in November following F5's analyst day) is worried "the number of recent executive departures is alarming and could be disruptive to the business" at some point in FY16 (ends Sep. '16). "Overall, we continue to view F5 as stuck in a catch-22 situation where shares will be penalized for either the pursuit of growth, which we believe requires greater investment to succeed (thus cutting into margins), or value (which will protect margins but hurt growth)."
    • Nomura's Jeff Kvaal sees the CEO change potentially disrupting FQ1 (calendar Q4). But he declares McAdam to be "the best candidate to propel F5 beyond this unexpected, and unfortunate, turn of events." F5 has reiterated its FQ1 guidance (issued on Oct. 28).
    | Dec. 15, 2015, 2:13 PM
  • Dec. 14, 2015, 4:28 PM
    • Manny Rivelo, named F5's (NASDAQ:FFIV) CEO only in April, has resigned "for matters regarding personal conduct unrelated to the operations or financials of the Company." He has also stepped down from the board. (PR)
    • John McAdam, who was F5's CEO for 15 years before Rivelo took over, has been reappointed as CEO, and will step down as chairman. Lead independent director Alan Higginson has been named non-executive chairman.
    • Higginson: "The Board believes John is best suited to lead the Company as F5 continues its evolution to expand our offerings and grow across our product suite." Nonetheless, the board "will undertake a formal search process" to identify a permanent CEO.
    | Dec. 14, 2015, 4:28 PM
  • Dec. 9, 2015, 9:19 AM
    • Believing the company's macro outlook remains shaky and that a pending hardware refresh cycle is unlikely to bring a return to material revenue growth, Nomura's Jeff Kvaal has downgraded F5 (NASDAQ:FFIV) to Reduce, and cut his target by $20 to $90.
    • Shares have dropped to $100.20 premarket. William Blair and JMP downgraded F5 last month following its analyst day, with each citing a lack of near-term catalysts. JMP also raised concerns about the impact of public cloud adoption.
    • F5 now trades for 14x an FY16 (ends Sep. '16) EPS consensus of $7.04; the FY16 revenue growth consensus is 7%. During the company's FQ4 call (transcript), new CEO Manny Rivelo suggested a product refresh will have a bigger impact on the second half of FY16
    | Dec. 9, 2015, 9:19 AM
  • Nov. 13, 2015, 10:00 AM
    • William Blair and JMP have each downgraded F5 (NASDAQ:FFIV) to Market Perform following yesterday's analyst day (webcast). Shares have made new 52-week lows.
    • William Blair's Jason Ader considers further downside limited, but also considers it hard to find a near-term catalyst. "[T]he stock is stuck in a purgatorial state between growth and value, and we believe management is overly optimistic about the business’s true growth prospects amid the status quo - a phenomenon that we believe is contributing to the recent spate of executive departures.”
    • Likewise, JMP's Erik Suppiger sees limited catalysts, save for "an upgrade cycle that will be one-time in nature," and isn't expected until the second half of FY16 (ends Sep. '16). He adds the adoption of public cloud platforms such as Amazon Web Services and Microsoft Azure is "serving as a net headwind to F5, as enterprises migrate more workloads to these providers, potentially reducing the total market opportunity for F5.”
    • F5 sold off hard last months after providing an FQ4 revenue miss and soft FQ1 guidance. On the earnings call (transcript), the guidance was blamed on seasonality, along with caution related to budget uncertainty stemming from forex and "lingering macro issues." When asked about cloud-related pressure, the company insisted cloud adoption is an opportunity, as F5's ADCs enable app/service portability and enforce consistent security and access policies for hybrid cloud deployments and enterprises using multiple public clouds.
    • Today's selloff comes as Cisco falls due to the light FQ2 guidance it provided with an FQ1 beat. Cisco noted enterprise orders were a weak spot.
    | Nov. 13, 2015, 10:00 AM
  • Oct. 29, 2015, 9:13 AM
    | Oct. 29, 2015, 9:13 AM
  • Oct. 28, 2015, 5:12 PM
    • In addition to missing FQ4 revenue estimates (while beating on EPS), F5 (NASDAQ:FFIV) is guiding for FQ1 revenue of $480M-$490M and EPS of $1.58-$1.61, below a consensus of $507.8M and $1.71.
    • Latin America, Canada, and Japan were weak in FQ4; the U.S. and EMEA were stronger. Product revenue (drives future services revenue) rose 1% Y/Y to $257.7M; services revenue rose 16% to $143.6M. GAAP operating expenses rose 14% to $269M, and $150M was spent on buybacks (boosted EPS).
    • Shares have fallen to $110.25 after hours. The figures could spark fresh concerns about the growth outlook for F5's core application delivery controller (ADC) market; F5 has been relying heavily on security hardware/software sales to grow its top line.
    • FQ4 results, PR
    | Oct. 28, 2015, 5:12 PM
  • Oct. 28, 2015, 4:07 PM
    • F5 Networks (NASDAQ:FFIV): FQ4 EPS of $1.84 beats by $0.10.
    • Revenue of $501.30M (+7.7% Y/Y) misses by $5.22M.
    • Shares -5.22%.
    | Oct. 28, 2015, 4:07 PM
  • Oct. 27, 2015, 5:35 PM
  • Oct. 6, 2015, 9:16 AM
    • Believing consensus estimates are too high and that the company is likely to cut guidance over the next 6 months, Citi's Jim Suva has launched coverage on F5 (NASDAQ:FFIV) with a Sell rating and $105 target.
    • Suva notes he's the only analyst with a bearish rating on F5. He has also started Cisco at Buy, and Juniper at Neutral.
    • F5 has fallen to $116.22 premarket. Suva's coverage comes as smaller F5 rival Radware tumbles in response to a Q3 warning. F5's FQ4 (calendar Q3) report arrives on Oct. 28.
    • Yesterday: F5 partners with FireEye
    | Oct. 6, 2015, 9:16 AM
  • Oct. 6, 2015, 9:15 AM
    | Oct. 6, 2015, 9:15 AM
  • Oct. 5, 2015, 11:11 AM
    • Citing fears about increased competition, Piper's Andrew Nowinski has downgraded FireEye (NASDAQ:FEYE) to Neutral, and cut his target by $23 to $37.
    • Nowinski: "Our downgrade is primarily due to increasing competition, though we are also concerned with conflict within the channel and recent executive turnover." His target translates into a 6.3x 2016E EV/sales ratio.
    • Palo Alto Networks, Cisco, and others have rolled out threat-prevention products and services over the last year that take aim at FireEye. The company is still generally seen as a technology leader with regards to solutions protecting networks and endpoints from malware and zero-day threats, and in probing attacks that have already occurred.
    • Separately, FireEye has announced it's partnering with F5 (FFIV +1.8%), the top player in the application delivery controller (ADC) market and also a security hardware vendor, to provide integrated solutions.
    • The joint solutions combine application delivery and content security functions, including "network segmentation and policy management, protocol conformance, DDoS mitigation, SSL inspection, advanced threat protection, intrusion prevention, threat intelligence, forensics, and analytics." FireEye/F5 also promise to provide better visibility into encrypted traffic, and to leverage the health-monitoring and load-balancing features of F5's BIG-IP platform.
    • FireEye announced a security services partnership with HP earlier this year, as well as a threat intelligence-sharing partnership with firewall/security appliance vendor Check Point.
    | Oct. 5, 2015, 11:11 AM | 7 Comments
  • Sep. 22, 2015, 11:57 AM
    • "We believe F5 (FFIV -3.1%) is experiencing slowing growth in its core ADC product resulting from factors both cyclical and secular," says analyst Ryan Hutchinson, downgrading to Neutral from Buy. He takes note of the conclusion of the Cisco ACE replacement, and the long-term revenue headwind from virtual appliance sales.
    • Then there's recent market share data from Gartner showing the broader ADC market growing 4.7-6.5% per year - F5, says Hutchinson, has become a "share donor," losing 130 bps of revenue share between Q1 and Q2 this year, and 60 bps Y/Y.
    | Sep. 22, 2015, 11:57 AM | 1 Comment
Company Description
F5 Networks Inc is a developer and provider of software-defined application services designed to ensure that applications delivered over Internet Protocol (IP) networks are available to any user, anywhere, anytime, on any device and on any network.
Sector: Technology
Country: United States