F5 Networks Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

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.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

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.

Key Stats:

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Hot Additional Stories:

Will New Apple Products PUMP Shares Higher?

Time to BUY This Dow Stock Near a 20 Year Low?

Is This Tech Behemoth a Long Term Stock Buy?