In its fiscal first-quarter results, the data networking company reported earnings of $1.22 a share, beating Thomson Reuters' estimate of $1.19 a share. F5 Networks reported a revenue increase of 11% to $406.5 million for the quarter, higher than the estimated $396.4 million.
The increase in sales is due to demand for new products, the company said.
Despite beating expectations, F5 Networks' net income dropped to $68 million, or 87 cents a share, in the quarter ending Dec. 31. In the same quarter the year before, the company posted net income of $69.5 million, or 88 cents a share.Following the earnings report JMP Securities reiterated its "outperform" rating for F5 Networks, raising its price target to $135 from $96. TheStreet Ratings team rates F5 Networks as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate F5 NETWORKS INC (FFIV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year."
- You can view the full analysis from the report here: FFIV Ratings Report