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F5 Networks (FFIV) Q3 Earnings: What Awaits the Stock?
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F5 Networks Inc. (FFIV - Free Report) is set to report third-quarter fiscal 2016 results on Jul 20. Last quarter, the company posted a negative earnings surprise of 2.36%.
Let's see how things are shaping up for this announcement.
Factors to Consider
F5 Networks is a leading provider of integrated Internet traffic and content management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications.
The company’s last reported results were less than encouraging, with both the top and bottom line falling short of the Zacks Consensus Estimate. A volatile spending atmosphere, along with intensifying competition, hampered F5 Network’s overall performance.
Furthermore, during the second-quarter conference call, the company’s management revealed that due to a soft market environment, the financial and telecommunications carrier has been witnessing a decline in bookings. Notably, the majority of the company’s overall revenues come from these markets.
These factors have not changed much of late, which means that they could negatively impact F5 Networks’ third-quarter performance.
Nonetheless, the company’s strategy of focusing on product refreshes is encouraging. Moreover, better execution, and focus on enterprise and service providers will help F5 Networks gain share in the application delivery controller market. However, these initiatives will need some time to start paying off.
Our proven model does not conclusively show that F5 Networks will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.38. Hence, the difference is 0.00%.
Zacks Rank: F5 Networks’ Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are a few companies that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Intel Corporation (INTC - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
QUALCOMM Incorporated (QCOM - Free Report) , with an Earnings ESP of +3.61% and a Zacks Rank #2.
Amazon.com Inc. (AMZN - Free Report) , with an Earnings ESP of +37.72% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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F5 Networks (FFIV) Q3 Earnings: What Awaits the Stock?
F5 Networks Inc. (FFIV - Free Report) is set to report third-quarter fiscal 2016 results on Jul 20. Last quarter, the company posted a negative earnings surprise of 2.36%.
Let's see how things are shaping up for this announcement.
Factors to Consider
F5 Networks is a leading provider of integrated Internet traffic and content management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications.
The company’s last reported results were less than encouraging, with both the top and bottom line falling short of the Zacks Consensus Estimate. A volatile spending atmosphere, along with intensifying competition, hampered F5 Network’s overall performance.
Furthermore, during the second-quarter conference call, the company’s management revealed that due to a soft market environment, the financial and telecommunications carrier has been witnessing a decline in bookings. Notably, the majority of the company’s overall revenues come from these markets.
These factors have not changed much of late, which means that they could negatively impact F5 Networks’ third-quarter performance.
Nonetheless, the company’s strategy of focusing on product refreshes is encouraging. Moreover, better execution, and focus on enterprise and service providers will help F5 Networks gain share in the application delivery controller market. However, these initiatives will need some time to start paying off.
F5 NETWORKS INC Price and EPS Surprise
F5 NETWORKS INC Price and EPS Surprise | F5 NETWORKS INC Quote
Earnings Whispers
Our proven model does not conclusively show that F5 Networks will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.38. Hence, the difference is 0.00%.
Zacks Rank: F5 Networks’ Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are a few companies that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Intel Corporation (INTC - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
QUALCOMM Incorporated (QCOM - Free Report) , with an Earnings ESP of +3.61% and a Zacks Rank #2.
Amazon.com Inc. (AMZN - Free Report) , with an Earnings ESP of +37.72% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>