F5 Networks Inc.
) hit a new 52-week high of $112.59 on Feb 11, eventually closing
at $112.26. The closing share price represents a one-year return
of 8.4% and a year-to-date return of 26.3%. Average volume of
shares traded over the last 10 days (2,081K) increased from the
average volume of shares traded over the last three months
This Zacks Rank #3 (Hold) company has a market cap of $8.50
billion with long-term earnings growth expectations of 16.5%.
Some of the current optimism surrounding the shares is related to
F5 Networks' upcoming product launches and growing demand for its
security solutions. The company's product refreshes are expected
to boost revenues, going forward. Moreover, these initiatives are
expected to expand the company's total addressable market (TAM)
and result in client wins.
On Jan 22, F5 Networks reported mixed first-quarter 2014 results.
The company's top line increased year over year and beat the
Zacks Consensus Estimate whereas the bottom line fell short of
the consensus. Improvement in revenues was due to broad-based
strength across end markets and geographical regions. Its cash,
cash equivalents and short-term investments stood at $578.2
million compared with $542.1 million in the previous quarter.
The company also provided encouraging second-quarter guidance.
For the second quarter of fiscal 2014, F5 Networks expects
revenues in the range of $408.0 million to $418.0 million. The
Zacks Consensus Estimate of $413.0 million is in the mid-point of
the range. The company expects non-GAAP earnings per share to be
in the range of $1.23 to $1.26, well above the Zacks Consensus
Estimate of 94 cents.
Additionally, F5 Networks also mentioned that it will continue
investing in technology and headcount to keep pace with the
changing market trends. Better execution and focus on enterprise
and service providers have placed F5 Networks well in the
application delivery controller market. The company is also keen
on expanding its cloud exposure. Nevertheless, the volatile
spending atmosphere and competition from
) remain concerns.
Over the last 30 days, earnings estimates for F5 Networks did not
show any upward or downward movement for the current quarter. The
Zacks Consensus Estimate for the second quarter of fiscal year
2014 is pegged at 94 cents per share. The estimate for 2014
increased 12 cents over the same time frame to $4.11 per share
due to positive estimate revisions.
Stocks That Warrant a Look
Although, F5 Networks has a Zacks Rank #3, its competitors
Juniper Networks and Brocade Communications, both carry a Zacks
Rank #2 (Buy).
BROCADE COMM SY (BRCD): Free Stock Analysis
CISCO SYSTEMS (CSCO): Free Stock Analysis
F5 NETWORKS INC (FFIV): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
To read this article on Zacks.com click here.