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F5 Networks (FFIV) to Report Q4 Earnings: Will it Surprise?
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F5 Networks Inc. (FFIV - Free Report) is set to report fourth-quarter fiscal 2016 results on Oct 26. Last quarter, the company posted a positive earnings surprise of 2.17%. Notably, in the trailing four quarters, F5 Networks surpassed the Zacks Consensus Estimate twice, missed it once and matched the same once, resulting in an average positive surprise of 0.94%.
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 encouraging, with both the top and the bottom line coming ahead of the respective Zacks Consensus Estimate. Also, year-over-year comparisons on both counts were favorable.
It is worth mentioning that the company’s GBB pricing strategy and its BIG-IQ platform remain tailwinds. Revenue growth seems to be steady and was positively impacted by strength across all its business segments and higher software revenues.
Furthermore, 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, thereby boosting its top and bottom line performances.
Nevertheless, a volatile spending atmosphere and competition from Juniper Networks Inc. (JNPR - Free Report) remain concerns.
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 $1.54. 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 negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
NVIDIA Corp. (NVDA - Free Report) , with an Earnings ESP of +8.93% and a Zacks Rank #3.
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F5 Networks (FFIV) to Report Q4 Earnings: Will it Surprise?
F5 Networks Inc. (FFIV - Free Report) is set to report fourth-quarter fiscal 2016 results on Oct 26. Last quarter, the company posted a positive earnings surprise of 2.17%. Notably, in the trailing four quarters, F5 Networks surpassed the Zacks Consensus Estimate twice, missed it once and matched the same once, resulting in an average positive surprise of 0.94%.
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 encouraging, with both the top and the bottom line coming ahead of the respective Zacks Consensus Estimate. Also, year-over-year comparisons on both counts were favorable.
It is worth mentioning that the company’s GBB pricing strategy and its BIG-IQ platform remain tailwinds. Revenue growth seems to be steady and was positively impacted by strength across all its business segments and higher software revenues.
Furthermore, 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, thereby boosting its top and bottom line performances.
Nevertheless, a volatile spending atmosphere and competition from Juniper Networks Inc. (JNPR - Free Report) remain concerns.
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 $1.54. 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 negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Boyd Gaming Corporation (BYD - Free Report) , with an Earnings ESP of +16.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corp. (NVDA - Free Report) , with an Earnings ESP of +8.93% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>