Bear Of The Day: F5 Networks (FFIV)

FFIV

The Bear of the Day is an article that shows why a Zacks Rank #5 (Strong Sell) has become just that, a Zacks Rank #5 (Strong Sell). The Zacks Rank looks at earnings estimate revisions and the stocks that see negative revisions slide lower on the scale.

F5 Networks (FFIV - Free Report) has missed the Zacks Consensus Estimate in each of the last three reports.  The two most recent reports have also seen the company report revenues that were below expectations.

Description

F5 Networks Inc. 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 products monitor and manage local and geographically dispersed servers and intelligently direct traffic to the server best able to handle a user's request. The products are designed to help prevent system failure and provide timely responses to user requests and data flow.

Earnings Estimates

The biggest factor that influences the Zacks Rank is the movement of earnings estimates.  When estimate revisions are positive, the stock tends to have a higher Zacks Rank.  That is not the case for FFIV.

The Zacks Consensus Estimate for FFIV was $6.47 in March of this year, but it slid to $6.35 in April and is now down to $6.28.

The 2018 estimate has also fallen.  The Zacks Consensus Estimate for 2018 was $7.41 in March and has dipped down to $6.87.  That is a big move lower.

 

 

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