Monday, April 28, 2025 Considering how the sky had been falling for much of this month on Wall Street, we're not doing so badly overall. Today saw a mid-day dip across major indexes, but rebounded into the green by the end of the session — all but the tech-heavy Nasdaq. The Dow gained +114 points on the day, +0.28% — after hitting -244 points at its session lows — while the S&P 500 finished +0.06%, essentially flat. The Nasdaq was mostly flat today, as well: -0.10%, while the small- cap Russell 2000 rose +0 ...

F5 Networks (FFIV) came out with quarterly earnings of $3.42 per share, beating the Zacks Consensus Estimate of $3.10 per share. This compares to earnings of $2.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.32%. A quarter ago, it was expected that this computer networking company would post earnings of $3.37 per share when it actually produced earnings of $3.84, delivering a surprise of 13.95%.Over the last four quarte ...

"F5's continuous innovation, technology leadership, and unique ability to address our customers' hybrid multicloud challenges were key drivers of our strong Q2 results," said François Locoh-Donou, F5's President and CEO. "Our second quarter revenue of $731 million reflects 7% growth year over year fueled by 12% product revenue growth including 27% systems revenue growth." Second Quarter Performance Summary Q2 FY25 Earnings Release Page 1 of 5 "F5 alleviates the high costs, crushing complexity, and escalatin ...

Core Viewpoint - F5 Inc. (FFIV) is expected to exceed earnings expectations for the second quarter of fiscal 2025, with projected non-GAAP EPS in the range of $3.02-$3.14, and a consensus estimate of $3.10 indicating a year-over-year increase of 6.5% [1][2]. Financial Projections - F5 anticipates non-GAAP revenues between $705 million and $725 million, with a consensus estimate of $716.9 million, reflecting a year-over-year growth of 5.2% [2]. Performance Drivers - The Product segment is likely to benefit from recovering demand for software solutions, despite IT budget cuts due to macroeconomic uncertainties, with estimated Software revenues at $173.1 million [3]. - Technology refresh activities are expected to enhance Systems segment sales, with estimated revenues of $151.2 million, contributing to an overall Product revenue estimate of $324.3 million, indicating an 8% year-over-year increase [4]. - The growth in BIG-IP and NGINX subscription software deals is anticipated to be a significant driver, with strong demand from large enterprises for cloud and Kubernetes workloads [5]. Cost Management - Cost-saving initiatives, including headcount reduction and facility footprint elimination, are likely to positively impact the bottom line [6]. Earnings Prediction - The combination of a positive Earnings ESP of +0.69% and a Zacks Rank of 3 suggests a strong likelihood of an earnings beat for F5 [7][8].

Core Insights - F5 Networks (FFIV) is expected to report quarterly earnings of $3.10 per share, reflecting a year-over-year increase of 6.5% [1] - Anticipated revenues for the quarter are projected to be $716.85 million, indicating a 5.2% increase compared to the same quarter last year [1] Earnings Projections - The consensus EPS estimate has been revised 0.2% lower over the last 30 days, indicating a reevaluation by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Breakdown - Analysts estimate 'Net revenues- Services' at $390.56 million, representing a 2.5% increase year-over-year [4] - 'Net revenues- Products' are forecasted to reach $326.29 million, suggesting an 8.7% year-over-year change [5] - 'Net product revenues- Software' are expected to be $178.08 million, indicating a 12.4% increase year-over-year [5] - 'Net product revenues- Systems' are projected at $148.45 million, reflecting a 4.8% increase from the prior-year quarter [5] Stock Performance - F5 shares have decreased by 7.4% over the past month, compared to a 6.6% decline in the Zacks S&P 500 composite [6] - F5 holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - F5 Networks (FFIV) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with a consensus EPS estimate of $3.10, reflecting a 6.5% increase, and revenues expected to reach $716.85 million, up 5.2% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for April 28, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 0.06% over the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +1.71% for F5, suggesting analysts have recently become more optimistic about the company's earnings prospects [10]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - F5 has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a surprise of +13.95% in the most recent quarter [12][13]. Industry Comparison - AppFolio (APPF), another player in the Zacks Internet - Software industry, is expected to report earnings of $1.22 per share, reflecting a year-over-year increase of 16.2%, with revenues projected at $221.56 million, up 18.2% [17]. - AppFolio's consensus EPS estimate has remained unchanged, but its Earnings ESP of 0.61% combined with a Zacks Rank of 4 (Sell) complicates predictions for an earnings beat [18].

Core Viewpoint - F5 Networks (FFIV) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report [1]. Earnings Performance - F5 Networks has a strong history of surpassing earnings estimates, averaging a 10.16% beat over the last two quarters [2]. - In the most recent quarter, F5 reported earnings of $3.84 per share, exceeding the expected $3.37 per share by 13.95% [2]. - For the previous quarter, the company reported $3.67 per share against an estimate of $3.45 per share, resulting in a surprise of 6.38% [2]. Earnings Estimates and Predictions - Recent estimates for F5 have been increasing, indicating a positive outlook for future earnings [5]. - The Zacks Earnings ESP for F5 is currently +1.71%, suggesting analysts are optimistic about the company's near-term earnings potential [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [5][8]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]. Upcoming Earnings Report - F5's next earnings report is anticipated to be released on April 28, 2025 [8].

Core Insights - Definitive Healthcare Corp. (DH) is currently viewed as a better value opportunity compared to F5 Networks (FFIV) based on various financial metrics and analyst outlooks [1][7]. Valuation Metrics - DH has a forward P/E ratio of 17.28, while FFIV has a forward P/E of 21.59, indicating that DH is potentially undervalued [5]. - The PEG ratio for DH is 1.89, compared to FFIV's PEG ratio of 3.05, suggesting that DH has a more favorable earnings growth outlook relative to its price [5]. - DH's P/B ratio stands at 0.89, significantly lower than FFIV's P/B of 5.52, further indicating DH's relative undervaluation [6]. Analyst Ratings - DH holds a Zacks Rank of 2 (Buy), reflecting stronger earnings estimate revision activity, while FFIV has a Zacks Rank of 3 (Hold) [3]. - The superior analyst outlook for DH suggests a more positive sentiment among analysts compared to FFIV [3][7]. Value Grades - DH has been assigned a Value grade of B, whereas FFIV has received a Value grade of D, highlighting DH's more attractive valuation metrics [6].

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Core Insights - F5 Networks' international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $766.49 million, reflecting a 10.7% increase [4] International Revenue Breakdown - Asia Pacific contributed $130.13 million, or 16.98% of total revenue, exceeding analyst expectations by +6.92% [5] - The "Other" category generated $24.59 million, accounting for 3.21% of total revenue, also surpassing estimates by +4.09% [6] - Europe, Middle East and Africa brought in $204.39 million, making up 26.67% of total revenue, with a surprise of +6.5% compared to projections [7] Future Revenue Predictions - Analysts project F5 will achieve revenues of $716.46 million for the ongoing fiscal quarter, a 5.2% increase year-over-year [8] - For the full year, total revenue is expected to reach $2.99 billion, up 6.3% from the previous year [9] Market Performance - F5's stock has increased by 20.6% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.1% [12] - Over the past three months, F5 shares gained 28.6%, compared to a 1.2% increase in the S&P 500 [12]