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S&P 500 (NYSE:SPY) component F5 Networks Inc. (NASDAQ:FFIV) reported higher profit for the third quarter as revenue showed growth. F5 Networks provides technology that optimizes the security and performance of servers, data storage devices and other network resources.
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F5 Networks Inc. Earnings Cheat Sheet
Results: Net income for F5 Networks Inc. rose to $72.3 million (91 cents per share) vs. $62.5 million (77 cents per share) in the same quarter a year earlier. This marks a rise of 15.6% from the year-earlier quarter.
Revenue: Rose 21.3% to $352.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: F5 Networks Inc. fell in line with the mean analyst estimate of 91 cents per share. Analysts were expecting revenue of $352.9 million.
Quoting Management: “During the third quarter, F5′s revenue and earnings continued to grow sequentially and year over year despite a more cautious spending environment,” said John McAdam, F5 president and chief executive officer.
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.7%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 26.1% from the year earlier quarter.
Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 0.9 percentage point from the year-earlier quarter to 82.9%. In this period, margins have grown an average of one percentage points per quarter on a year-over-year basis.
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 23.5% and in the first quarter, the figure rose 19.5%.
The company met estimates last quarter after toppling them in the two previous quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 2 cents.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.01 per share, down from $1.03 ninety days ago. At $3.62 per share, the average estimate for the fiscal year has fallen from $3.65 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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