The firm thinks the developer and provider of application delivery services positioning vis-a-vis NFN/SDN has improved, while its momentum from a number of growth drivers, including security, has increased.
ISI Group is now more confident that the company's EPS could approach $7 in 2015. Their target price is $135.
Must Read: Warren Buffett's 25 Favorite Stocks
- The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 18.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FFIV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, F5 NETWORKS INC's return on equity exceeds that of both the industry average and the S&P 500.
- F5 NETWORKS INC has improved earnings per share by 22.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, F5 NETWORKS INC increased its bottom line by earning $3.51 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($5.35 versus $3.51).
- Net operating cash flow has slightly increased to $138.23 million or 9.50% when compared to the same quarter last year. In addition, F5 NETWORKS INC has also modestly surpassed the industry average cash flow growth rate of 5.10%.
- You can view the full analysis from the report here: FFIV Ratings Report