F5 Networks reported another quarter of strong sales in Q3 2014 driven by rising customer adoption of its new product portfolio, the ‘Good, Better, Best’ pricing model, and the growing sales momentum of F5′s security and service provider business.
The solid revenue growth and profitability in Q3 2014 was driven by strong uptake of F5′s expanding array of systems and application services.
The company claims to have experienced a very strong increase in its business pipeline in Q3 which it believes will translate into growth in the current quarter as well as fiscal 2015.
F5 Networks (FFIV) is now down 7.6% AH following its FQ3 release, adding to the 6.1% drop it registered today following Riverbed's (RVBD) FQ2 results. The company set FQ4 revenue and EPS guidance of $307M-$312M and $0.97-$0.99, in line with a consensus of $309.7M and $0.98. The market was apparently looking for more. (PR)
IDC expects revenues for servers used to handle cloud applications to reach $9.4B by 2015, with unit shipments growing more than 21% annually. Companies likely to benefit include Fusion-io (FIO), whose memory modules are increasingly used in cloud servers, and F5 Networks (FFIV), whose application switches often interface with cloud servers.
Barclays upgrades F5 Networks (FFIV +4.5%), saying the recent pull back, demand for server virtualization and cloud architecture products, plus only modest competition from Cisco (CSCO-0.3%) make the stock "compelling."
F5 (FFIV) continues to climb premarket after its AH earnings beat. Weakness in Japan was offset by growth in North America and Asia-Pacific, and CEO John McAdam believes the company is in the 'sweet spot' of the big trends in tech. Shares +12.7%.
Doug Kass notes underperformance in five prominent techs: First Solar (FSLR -5.1%), F5 Networks (FFIV -2.4%), Amazon.com (AMZN -2.2%), Salesforce.com (CRM -5.9%) and Netflix (NFLX -3%). Kass has warned that the market leadership of "high-octane, high-beta, high-flying stocks" is deteriorating and could presage broader market weakness. All five are falling today, too.
A leg up for stocks puts major indexes back in positive ground, led by Nasdaq's session high (+0.5% to 2,768); tech leaders include Research In Motion (RIMM +2.3%), F5 Networks (FFIV +3.7%), JDS Uniphase (JDSU +24.2%) and FEI Co. (FEIC +13.6%). The dollar's moving again, +0.9% again yen, +0.4% against euro.
NetApp (NTAP -3.4%) is clearly feeling a ripple effect from VMware's (VMW -4.8%) disappointing outlook. But Trefis is bullish on it and cloud and storage stocks in general. And NetApp should benefit from "large scale adoption" of cloud technology, even despite last week's F5 Networks (FFIV +0.3%) "surprise."
0ZJ+ FollowFollowing- Unfollow|Send Message4 Nov 2011
Missed the boat on RAX, FN, AKAM, FFIV. Stocks I've watched forever, but never bit on. Need to be more decisive with speculative positions.
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ChaoGu168+ FollowFollowing- Unfollow|Send Message3 Nov 2011
Made some nice ca$h today on strangle trades with FFIV, AKAM and roll over calls w/APA.
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FFIV vs. ETF Alternatives
F5 Networks Inc provides Application Delivery Networking (ADN) technology that secures and optimizes the delivery of network-based applications and the security, performance and availability of servers, and other network resources.