F5 Networks (FFIV) to Post Q4 Earnings: What's in the Cards?
F5 Networks FFIV is scheduled to report its fourth-quarter fiscal 2022 results after market close on Oct 25.
The company’s earnings surpassed estimates in all of the trailing four quarters, the average beat being 8.4%.
For the fiscal fourth quarter, F5 Networks estimates revenues in the range of $680-$700 million ($690 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $692.2 million, suggesting a year-over-year increase of 1.5%.
The company anticipates non-GAAP earnings in the range of $2.45-$2.57 per share ($2.51 at the midpoint). The Zacks Consensus Estimate stands at $2.54 per share, indicating a year-over-year decrease of approximately 15.6%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
F5 Networks’ fiscal fourth-quarter performance is likely to have benefited from the hybrid work environment and the ongoing digital transformation wave, which is boosting the demand for secured communication networks.
F5 Network’s sustained focus on transitioning the business into a software-driven model is anticipated to have aided the company’s overall performance in the fiscal fourth quarter. The surging demand for multi-cloud application services is expected to have been a key growth driver during the quarter.
Growing traction for the Enterprise License Agreement and annual subscriptions by customers are likely to have boosted software growth in the to-be-reported quarter. F5 Networks expects revenues from the Software segment to increase in the 35%-40% range in full-fiscal 2022.
However, the ongoing industry-wide supply-chain constraints for components are likely to have negatively impacted F5 Networks’ systems sales during the fiscal fourth quarter. This, in turn, is anticipated to have partially offset the benefits of the growth projection for the software business, thereby leading to much slower growth in overall Product segment revenues. The Zacks Consensus Estimate for Product revenues stands at $342 million compared with the year-ago reported figure of $340 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
F5 has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Equinor EQNR, Kimbell Royalty KRP and Murphy USA MUSA have the right combination of elements to post an earnings beat in their upcoming releases.
Equinor has an Earnings ESP of +25.07% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Oct 26. Equinor’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EQNR’s third-quarter earnings is pegged at $1.78 per share, indicating a 109.4% surge from the year-ago quarter’s 85 cents per share. The consensus mark for revenues stands at $57.68 billion, suggesting a year-over-year increase of 147.9%.
Kimbell Royalty has an Earnings ESP of +21.88% and currently sports a Zacks Rank #1. The company is slated to report its third-quarter 2022 results on Nov 3. Kimbell’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters and missed on the other two occasions, the average surprise being 34.4%.
The Zacks Consensus Estimate for Kimbell’s third-quarter earnings stands at 32 cents per share, implying a year-over-year increase of 700%. KRP is estimated to report revenues of $67.8 million, which suggests a surge of 113.1% from the year-ago quarter.
Murphy has an Earnings ESP of +12.68% and carries a Zacks Rank #1 at present. The company is slated to report third-quarter 2022 results on Oct 26. Murphy’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 49%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $7.82 per share, suggesting a year-over-year increase of 96.5%. MUSA’s quarterly revenues are estimated to increase 29.7% year over year to $5.96 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
F5, Inc. (FFIV) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Kimbell Royalty (KRP) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
