F5 Networks (FFIV) Stock Surges in After-Hours Trading on Q3 Earnings Beat

F5 Networks (FFIV) stock is rising in after-hours trading on Wednesday following the release of its fiscal 2016 third quarter results.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of F5 Networks (FFIV) - Get Report are advancing by 3.32% to $125.50 in after-hours trading on Wednesday, after the company reported better-than-expected results for the third quarter.

The Seattle-based company reported adjusted earnings of $1.81 per share after the market close, compared to analysts surveyed by Thomson Reuters' expectations of $1.79 per share.

Sales came in at $496.5 billion, ahead of analysts estimates of $495.33 billion.

"During the third quarter, F5 delivered solid revenue growth and strong earnings despite a relatively challenging spending environment," F5 Networks CEO John McAdam said in a statement. 

F5 Networks noted it introduced a series of new products in the third quarter, including version 5.0 of its BIG-IQ management service. 

The private equity firm Thoma Bravo reportedly announced it would consider purchasing F5 Networks, yesterday. However, a source close to F5 told the New York Post that a deal might have been "more interesting a year ago."

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate F5 NETWORKS INC as a Buy with a ratings score of B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: FFIV

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