Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

MKM: F5 Networks’ Q3 Results Indicate Mixed Shift To Software

Courtesy of Benzinga.

MKM: F5 Networks' Q3 Results Indicate Mixed Shift To Software

F5 Networks, Inc. (NASDAQ: FFIV) delivered overall healthy results for the third quarter. While underlying organic shift toward Software during the quarter is a positive, the EPS estimates for 2019 and 2020 have been lowered due to investments related to NGINX, according to MKM Partners.

The Analyst

MKM Partners’ Michael Genovese maintained a Neutral rating on F5 Networks, while reducing the price target from $175 to $164.

The Thesis

F5 Networks reported third-quarter total revenues at $563 million, including $5 million from the NGINX acquisition which it closed on May 8, Genovese said in the note.

Product revenues also grew 4% to $249 million. Organic Software Product revenues rose 79%, while total Software revenues grew 91%. The analyst considers this as “an important positive inflection” for the company’s Software sales performance.

Systems Product revenues fell 11% to $181 million, with more customers shifting to Software Products.

F5 Networks guided to fourth-quarter revenue of $577 million-$587 million, which includes a contribution of $8 million from NGINX. Genovese mentioned that the company plans to invest heavily in an integrated F5/NGINX platform targeting the DevOps community and expects to release this in about six months.

The analyst reduced the EPS estimates for 2019 and 2020 from $2.78 to $2.56 and from $11.32 to $10.74, respectively, to reflect the NGINX investment.

Price Action

Shares of F5 Networks are down 0.65% at $147.7 at the time of publishing on Thursday.

Latest Ratings for FFIV

Date Firm Action From To
Jul 2019 Maintains Outperform
Jul 2019 Maintains Outperform
Jul 2019 Downgrades Neutral Sell

View More Analyst Ratings for FFIV


View the Latest Analyst Ratings

Posted-In: Michael GenoveseAnalyst Color Earnings News Price Target Reiteration Analyst Ratings Tech


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!