F5 Networks, Inc. (FFIV) - NASDAQ
  • Wed, Jul. 20, 4:26 PM
    • F5 Networks (NASDAQ:FFIV) is up 3.9% after hours following fiscal Q2 results where it beat on top and bottom lines and set an upbeat forecast for the upcoming quarter.
    • Net income overall fell on a GAAP basis, but rose on a per-share basis to $1.37. Non-GAAP net income rose slightly, to $121.7M ($1.81/share vs. a year-ago $1.67).
    • Revenue breakout: Products, $231.4M (down 7%); Services, $265.2M (up 12.9%).
    • The company has a revenue goal of $515M-$525M for fiscal Q4 (vs. consensus for $517.7M) and a goal for non-GAAP EPS of $1.92-$1.95 (vs. consensus for $1.92).
    • Conference call to come at 4:30 p.m.
    • Previously: Earnings ahead, RBC raises F5 Networks target price (Jul. 20 2016)
    • Press Release
    | Wed, Jul. 20, 4:26 PM
  • Wed, Jul. 20, 4:06 PM
    • F5 Networks (NASDAQ:FFIV): FQ3 EPS of $1.81 beats by $0.02.
    • Revenue of $496.5M (+2.7% Y/Y) beats by $1.21M.
    • Shares +1.5%.
    • Press Release
    | Wed, Jul. 20, 4:06 PM
  • Tue, Jun. 7, 3:42 PM
    • Reuters reports F5 Networks (FFIV +11.4%) is working with Goldman to reach out to field takeover interest. Shares have soared in response.
    • Update (3:49PM ET): Sources tell Reuters F5 has received "takeover approaches," and is working with Goldman to "decide on its next steps." Shares are up 12.1%.
    | Tue, Jun. 7, 3:42 PM | 4 Comments
  • Tue, May 17, 10:05 AM
    • F5 Networks (NASDAQ:FFIV) is off 1.8% as Pacific Crest downgrades shares to Sector Weight, with an eye on valuation after the stock rose 9.7% in the past month.
    • The firm has pulled its $109 price target. Shares today are quoting at $105.41.
    • Along with valuation, analyst Brent Bracelin noted the downgrade came due to a mix shift to subscription offerings, cloud pressures and the increasing prospect of M&A.
    • Risk/reward now looks balanced, he writes. "Our Sector Weight rating reflects our belief that the Shasta appliance refresh cycle will not drive a return to double-digit product growth, at least not for any quarter this year, and there is increasing execution risk with a higher probability of M&A within cloud security."
    • Now read F5 Networks: Can Growth Restart? »
    | Tue, May 17, 10:05 AM | 1 Comment
  • Wed, Apr. 20, 4:34 PM
    • F5 Networks (NASDAQ:FFIV) is up 2.9% after hours following a profit beat in its fiscal Q2, though revenues fell just short after growing 2.4%.
    • It also announced an additional $1B for its stock repurchase program, incremental to an unused $73.8M.
    • Patent litigation expense crimped GAAP net income to $75.4M, down from a year-ago $85.7M. On a non-GAAP basis, net income was $114M -- down slightly overall from $115.3M, but up to $1.68 per diluted share from the previous $1.59/share.
    • "Sales of our Better/Best software bundles, Virtual Editions, and Silverline subscription services all grew during the quarter as customers continued to embrace hybrid strategies and venture into public and private clouds," says CEO John McAdam.
    • The company's set a fiscal Q3 goal of $490M-$500M in revenue (vs. consensus of $502.7M) and a non-GAAP EPS target of $1.77-$1.80, above consensus for $1.74.
    • Press Release
    • Now read F5 Networks: Can Growth Restart? »
    | Wed, Apr. 20, 4:34 PM
  • Wed, Apr. 20, 4:09 PM
    • F5 Networks (NASDAQ:FFIV): FQ2 EPS of $1.68 beats by $0.05.
    • Revenue of $483.7M (+2.4% Y/Y) misses by $2.23M.
    • Shares +5%.
    • Press Release
    | Wed, Apr. 20, 4:09 PM
  • 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
  • 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. 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. 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
  • Aug. 3, 2015, 9:52 AM
    • Buckingham Research has downgraded F5 (NASDAQ:FFIV) to Neutral. The firm had upgraded F5 to Buy on Jan. 22, after shares plunged on account of a revenue miss and soft guidance. F5 had risen 23% since.
    • The downgrade comes 12 days after the ADC/security hardware and software vendor jumped following an FQ3 beat and strong FQ4 EPS guidance.
    | Aug. 3, 2015, 9:52 AM
Company Description
F5 Networks, Inc. engages in development of software-defined application services. The firm includes marketing and sale of application delivery networking products. The company was founded on February 15, 1996 and is headquartered in Seattle, WA.
Sector: Technology
Industry: Application Software
Country: United States