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F5 (FFIV) Gears Up for Q1 Earnings: What's in the Offing?
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F5 (FFIV - Free Report) is scheduled to report first-quarter fiscal 2023 results after market close on Jan 24.
The company’s earnings surpassed estimates in all of the trailing four quarters, the average beat being 7%.
For the fiscal first quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $699.7 million, suggesting a year-over-year increase of 1.8%.
The company anticipates non-GAAP earnings in the range of $2.25-$2.37 per share ($2.31 at the midpoint). The Zacks Consensus Estimate stands at $2.33 per share, indicating a year-over-year decrease of approximately 19.4%.
F5’s fiscal first-quarter performance is likely to have benefited from the hybrid work environment and the ongoing digital transformation wave, which is boosting the demand for secured communication networks.
F5’s sustained focus on transitioning the business into a software-driven model is anticipated to have aided the company’s overall performance in the fiscal first quarter. The surging demand for multi-cloud application services is expected to have been a key growth driver during the quarter.
Growing traction for the Enterprise License Agreement and annual subscriptions by customers are likely to have boosted software growth in the to-be-reported quarter. F5 expects revenues from the Software segment to increase in the 15-20% range for full-fiscal 2023.
However, the ongoing industry-wide supply-chain constraints for components are likely to have negatively impacted F5’s Systems division sales during the fiscal first quarter. This, in turn, is expected to have partially offset the benefits of the growth projection for the software business, thereby leading to much slower growth in overall Product segment revenues.
The Zacks Consensus Estimate for Product revenues stands at $349 million. This implies an estimated 1.7% increase from the Product segment’s revenues of $343 million in the year-ago quarter.
Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt F5’s overall financial performance in the fiscal first quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though F5 carries a Zacks Rank #3 at present, it has an Earnings ESP of -3.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, MSCI (MSCI - Free Report) , Meta Platforms (META - Free Report) and Lam Research (LRCX - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MSCI carries a Zacks Rank #2 and has an Earnings ESP of +0.43%. The company is scheduled to report fourth-quarter 2022 results on Jan 31. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same once, the average surprise being 3.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.71 per share, implying a year-over-year increase of 8%. It is estimated to report revenues of $565.2 million, which suggests growth of 2.8% from the year-ago quarter.
Meta is slated to report fourth-quarter 2022 results on Feb 1. The company has a Zacks Rank #3 and an Earnings ESP of +10.48% at present. META’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters while missing the same on three occasions, the average surprise being a negative 2.6%.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.12 per share, suggesting a decline of 42.2% from the year-ago quarter’s earnings of $3.67. Meta’s quarterly revenues are estimated to decline 7.2% year over year to $31.2 billion.
Lam Research carries a Zacks Rank #3 and has an Earnings ESP of +0.42%. The company is slated to report second-quarter fiscal 2023 results on Jan 25. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 7.4%.
The Zacks Consensus Estimate for LRCX’s fiscal second-quarter earnings is pegged at $9.96 per share, indicating a year-over-year increase of 16.8%. The consensus mark for revenues stands at $5.1 billion, suggesting a year-over-year increase of 20.3%.
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F5 (FFIV) Gears Up for Q1 Earnings: What's in the Offing?
F5 (FFIV - Free Report) is scheduled to report first-quarter fiscal 2023 results after market close on Jan 24.
The company’s earnings surpassed estimates in all of the trailing four quarters, the average beat being 7%.
For the fiscal first quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $699.7 million, suggesting a year-over-year increase of 1.8%.
The company anticipates non-GAAP earnings in the range of $2.25-$2.37 per share ($2.31 at the midpoint). The Zacks Consensus Estimate stands at $2.33 per share, indicating a year-over-year decrease of approximately 19.4%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
F5’s fiscal first-quarter performance is likely to have benefited from the hybrid work environment and the ongoing digital transformation wave, which is boosting the demand for secured communication networks.
F5’s sustained focus on transitioning the business into a software-driven model is anticipated to have aided the company’s overall performance in the fiscal first quarter. The surging demand for multi-cloud application services is expected to have been a key growth driver during the quarter.
Growing traction for the Enterprise License Agreement and annual subscriptions by customers are likely to have boosted software growth in the to-be-reported quarter. F5 expects revenues from the Software segment to increase in the 15-20% range for full-fiscal 2023.
However, the ongoing industry-wide supply-chain constraints for components are likely to have negatively impacted F5’s Systems division sales during the fiscal first quarter. This, in turn, is expected to have partially offset the benefits of the growth projection for the software business, thereby leading to much slower growth in overall Product segment revenues.
The Zacks Consensus Estimate for Product revenues stands at $349 million. This implies an estimated 1.7% increase from the Product segment’s revenues of $343 million in the year-ago quarter.
Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt F5’s overall financial performance in the fiscal first quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though F5 carries a Zacks Rank #3 at present, it has an Earnings ESP of -3.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, MSCI (MSCI - Free Report) , Meta Platforms (META - Free Report) and Lam Research (LRCX - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MSCI carries a Zacks Rank #2 and has an Earnings ESP of +0.43%. The company is scheduled to report fourth-quarter 2022 results on Jan 31. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same once, the average surprise being 3.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.71 per share, implying a year-over-year increase of 8%. It is estimated to report revenues of $565.2 million, which suggests growth of 2.8% from the year-ago quarter.
Meta is slated to report fourth-quarter 2022 results on Feb 1. The company has a Zacks Rank #3 and an Earnings ESP of +10.48% at present. META’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters while missing the same on three occasions, the average surprise being a negative 2.6%.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.12 per share, suggesting a decline of 42.2% from the year-ago quarter’s earnings of $3.67. Meta’s quarterly revenues are estimated to decline 7.2% year over year to $31.2 billion.
Lam Research carries a Zacks Rank #3 and has an Earnings ESP of +0.42%. The company is slated to report second-quarter fiscal 2023 results on Jan 25. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 7.4%.
The Zacks Consensus Estimate for LRCX’s fiscal second-quarter earnings is pegged at $9.96 per share, indicating a year-over-year increase of 16.8%. The consensus mark for revenues stands at $5.1 billion, suggesting a year-over-year increase of 20.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.