Fri, Jan. 23, 12:27 AM
- Stifel cut F5 (NASDAQ:FFIV) to Hold on account of the company's FQ1 revenue miss and light FQ2 guidance. But Buckingam Research upgraded to Buy due to the resulting nosedive, and a few other sell-side firms defended the ADC/security hardware vendor, generally arguing non-ADC growth opportunities will help the company rebound.
- D.A. Davidson's Mark Kelleher: "F5 offers the most complete application delivery platform in the market. Its [TMOS OS] provides the foundation for a wide variety of Application Delivery modules, allowing the company to continuously expand its total addressable market ... we expects its security portfolio to drive significant growth."
- William Blair's Jason Ader: "We see this as an execution blip for F5 rather than anything reflective of a weak macro environment or structural issues in the business ... In retrospect, we believe that management was overly optimistic on the heels of a stellar second half of fiscal 2014 and misread timing on a handful of large deals in the seasonally soft first quarter."
- Credit Suisse's Vlad Rom is upbeat about F5's exposure to enterprise app deployments and (through its Diameter signaling offerings) 4G buildouts, as well as its security growth. But he cautions "security/wireless product ramps are necessary to drive mid-teens revenue growth," given the core ADC market's growth is set to slow to the mid-single digits. Barclays' Ben Reitzes raised similar concerns.
- Pac Crest's Brent Bracelin notes shares now go for only 10x his 2016 free cash flow estimates on an EV/FCF basis. They finished Thursday trading down 10%.
Thu, Jan. 22, 12:45 PM
Thu, Jan. 22, 9:15 AM
Wed, Jan. 21, 5:35 PM
Wed, Jan. 21, 4:29 PM
- In addition to missing FQ1 revenue estimates (while beating on EPS), F5 (NASDAQ:FFIV) is guiding for FQ2 revenue of $465M-$475M and EPS of $1.48-$1.51, below a consensus of $478.9M and $1.53.
- CEO John McAdam: "In addition to the seasonal softness we normally experience in the first quarter of a new fiscal year, product sales during the quarter reflected a marked decrease in the number of deals greater than $1 million." However, he insists "the number of large deals in the current pipeline is encouraging and indicates [F5] should see a resumption of the recent trend toward larger deals in [FQ2]."
- FQ1 product revenue +10% Y/Y to $240.9M; services revenue +18% to $221.9M. Software revenue rose 44%.
- $750M has been added to F5's buyback authorization, raising its available funds to $930.7M. $150M was spent on buybacks in FQ1, boosting EPS.
- Smaller application delivery controller vendor Radware (NASDAQ:RDWR) is down 2% AH. Barclays' Jan. 14 downgrade of F5 was well-timed.
- FQ1 results, PR
Wed, Jan. 21, 4:10 PM
Tue, Jan. 20, 5:35 PM
Wed, Jan. 14, 11:16 AM
- Barclays' Ben Reitzes: "We are lowering our rating on F5 (NASDAQ:FFIV) to Equal Weight based on our view that the risk/reward equation is balanced at current levels despite positive fundamentals." His target is still $136.
- The downgrade comes ahead of F5's Jan. 21 FQ1 report. Shares go for 19x estimated FY15 (ends Sep. '15) EPS. The FY15 revenue growth consensus is at 13.5%.
Mon, Jan. 5, 9:16 AM
Dec. 15, 2014, 7:54 AM
- The Q-50 Index houses those companies next-eligible for inclusion into the Nasdaq 100 (NASDAQ:QQQ). Amid the Nasdaq 100's annual changes which added and dropped three from the index, the Q-50's quarterly re-ranking adds and drops eleven.
- Added: Ainylam Pharma (NASDAQ:ALNY), Expedia (NASDAQ:EXPE), F5 Networks (NASDAQ:FFIV), JD.com (NASDAQ:JD), MercadoLibre (NASDAQ:MELI), Maxim Integrated (NASDAQ:MXIM), Old Dominion Freight Line (NASDAQ:ODFL), Shire (NASDAQ:SHPG), Splunk (NASDAQ:SPLK), Stratasys (NASDAQ:SSYS), United Therapeutics (NASDAQ:UTHR).
- Dropped: Avis Budget (NASDAQ:CAR), Cree (NASDAQ:CREE), First Solar (NASDAQ:FSLR), Golar LNG (NASDAQ:GLNG), Methanex (NASDAQ:MEOH), Melco Crown (NASDAQ:MPEL), Nuance (NASDAQ:NUAN), SolarCity (NASDAQ:SCTY). Also dropped are the three Nasdaq 100 additions: American Airlines, Lam Research, and Electronic Arts.
- Source: Press Release
- Previously: Who's in, who's out in annual change to Nasdaq 100 (Dec. 13, 2014)
Dec. 13, 2014, 8:45 AM
- American Airlines (NASDAQ:AAL), Electronic Arts (NASDAQ:EA), and Lam Research (NASDAQ:LRCX) will be added to the Nasdaq 100 (NASDAQ:QQQ) ahead of the open on December 22.
- Removed will be Expedia (NASDAQ:EXPE), F5 Networks (NASDAQ:FFIV), and Maxim Integrated (NASDAQ:MXIM).
- A revision to the index methodology allows multiple share classes of index participants to be included, so Comcast Class A Special (NASDAQ:CMCSK), Twenty-First Century Fox Class B (NASDAQ:FOX), and Liberty Global Class C (NASDAQ:LBTYK) will also become part of the index.
- Source: Press Release
- ETFs: QQQ, PSQ, TQQQ, QID, SQQQ, QLD, QQEW, QQQE, QQXT
Nov. 10, 2014, 9:51 AM
- Declaring its Project VIP network expansion effort ahead of schedule, AT&T has set a 2015 capex budget of $18B, down from 2014's $21B and below a prior forecast of $20B. The figure is equal to only 13% of AT&T's 2015 revenue consensus.
- Telecom equipment and optical component makers, many of whom have already felt the effects of AT&T's subdued 2014 wireline capex, are off in early trading. CSCO -1.4%. ALU -4.8%. CIEN -6.6%. ADTN -7.8%. JNPR -2.5%. RKUS -2.1%. SONS -2.9%. FNSR -2.9%. JDSU -1.1%. RKUS -2.1%. XXIA -2%. FFIV -1.6%. ERIC -1.7%.
- Cisco delivers its FQ1 report on Wednesday. The networking giant reported an 11% Y/Y FQ4 drop in service provider orders, thanks to both weak demand and share loss.
Oct. 29, 2014, 4:31 PM
- Along with its FQ4 report, F5 (NASDAQ:FFIV) announces CEO John McAdam plans to retire at the end of FY15 (ends Sep. '15). The board will search for a successor to McAdam, who has been CEO since 2000.
- FQ1 guidance is in-line: Revenue of $460M-$470M and EPS of $1.46-$1.49 vs. a consensus of $464.9M and $1.48.
- FFIV -2.2% AH. FQ4 results, PR
Oct. 29, 2014, 4:11 PM
Oct. 28, 2014, 2:29 PM
- In addition to soundly beating Q3 estimates, Radware (NASDAQ:RDWR) guided on its CC (transcript) for Q4 revenue of $59M-$61M and EPS of $0.25-$0.28, above a consensus of $58.4M and $0.24.
- CEO Roy Zisapel stated Radware is seeing strong demand for both its application delivery controller (ADC) and cybersecurity offerings. ADC sales have been boosted by strong uptake for the recently-launched Alteon NG platform, which (like some rival offerings) provides a slew of performance-optimization and security services to go with basic load balancing.
- ADC market leader F5 (NASDAQ:FFIV) is rallying ahead of tomorrow's FQ4 report. The Nasdaq is up 1.3%
Oct. 20, 2014, 2:28 PM
- Cisco (CSCO -1.7%), VMware (VMW -1.5%), F5 (FFIV -1.5%), NetApp (NTAP -1.5%), Teradata (TDC -3.3%), and SGI (SGI -3.5%) have joined several other enterprise tech names in declining after IBM and SAP each posted disappointing Q3 reports. The Nasdaq is up 1% on the day.
- IBM provided a smorgasbord of bad news: A Q3 miss, soft full-year guidance, the pulling of a $20/share 2015 EPS target, a 15% Y/Y hardware revenue decline, and a 7% Y/Y services backlog drop. In addition, the IT giant said it "saw a marked slowdown in September in client buying behavior."
- Citing the impact of a shift in customer spending towards subscription-based cloud apps from on-premise software (typically paid through an up-front license fee), SAP slashed its full-year op. profit forecast. Q3 revenue was slightly below consensus, and EPS in-line.
- VMware reports tomorrow, F5 on Thursday, SGI on Oct. 29, and Teradata on Nov. 6.
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.
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