Stock Monitor: Automatic Data Processing Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free earnings report on F5 Networks, Inc. (NASDAQ: FFIV), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FFIV. On April 25, 2018, F5 Networks reported financial results for the second quarter ending March 31, 2018. The Company exceeded analysts' consensus estimates for revenue as well as earnings in the second quarter of 2018 (Q2 FY18). Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
F5 Networks' total revenues for Q2 FY18 reached $533.30 million, reflecting an increase of 2.91% from $518.25 million in Q2 FY17 driven by the Company's software solutions and Services business. The reported total revenue number surpassed analysts' consensus estimates of $530 million. In the quarter under review, the Company's product revenues dipped 1.46% to $237.56 million while its services revenue jumped 6.70% to $295.75 million on a y-o-y basis.
In Q2 FY18, F5 Networks' cost of net revenues was $89.65 million, 1.97% higher than $87.91 million in Q2 FY17. F5 Networks' gross profit advanced 3.10% to $443.66 million in Q2 FY18 from $430.34 million in Q2 FY17.
During Q2 FY18, F5 Networks incurred operating expenses of $300.30 million, an increase of 2.91% from $291.81 million in Q2 FY17. In the reported quarter, the Company's sales and marketing expenses jumped 3.20% to $169.97 million, research and development (R&D) expenses increased 2.04% to $91.06 million, while general and administrative (G&A) expenses advanced 3.33% to $39.28 million on a y-o-y basis. F5 Networks had an income from operations of $143.36 million in the reported quarter, up 3.49% from $138.52 million in the previous year's same quarter.
F5 Networks generated a net income of $109.64 million in Q2 FY18, 17.71% higher than $93.14 million in Q2 FY17. The Company reported diluted earnings per share (DEPS) of $1.77 in the quarter under review, 23.78% higher than $1.43 in the year-ago corresponding quarter. The reported results for Q2 FY18 and Q2 FY17 included stock-based compensation expense, amortization of purchased intangible assets, litigation expenses and tax impact of these items. Excluding these non-recurring items, the Company had a non-GAAP DEPS of $2.31 per share in Q2 FY18, an increase of 18.46% from $1.95 per share in Q2 FY17,k which was higher than analysts' consensus estimates of $2.26 per share.
F5 Networks had cash and cash equivalents of $595.92 million as on March 31, 2018, compared to $673.23 million as on September 30, 2017. The Company's total long-term liabilities as on March 31, 2018, were $328.36 million, 5.06% higher than the $312.55 million as on September 30, 2017.
For the six months ending March 31, 2018 (H1 FY18), F5 Networks' cash flow from operating activities was $374.71 million, 2.76% higher than the $364.65 million reported for the six months ending March 31, 2017 (H1 FY17).
F5 Networks spent $16.25 million on purchase of property and equipment in H1 FY18, 31.49% lower than $23.72 million in H1 FY17. The Company spent $300.05 million on repurchase of common stock in the reported quarter, almost the same as in the prior year's same quarter.
For the third quarter of fiscal 2018 ending June 30, 2018, F5 Networks expects revenue to be in the range of $535 million to $545 million and GAAP earnings to be in the range of $1.79 to $1.82 per diluted share. The Company anticipates non-GAAP earnings of $2.36 to $2.39 per diluted share in Q3 FY18, excluding stock-based compensation expense, and amortization of purchased intangible assets.
Stock Performance Snapshot
May 11, 2018 - At Friday's closing bell, F5 Networks' stock slightly fell 0.58%, ending the trading session at $171.76.
Volume traded for the day: 649.74 thousand shares.
Stock performance in the last month – up 15.78%; previous three-month period – up 23.89%; past twelve-month period – up 32.18%; and year-to-date – up 30.89%
After last Friday's close, F5 Networks' market cap was at $10.51 billion.
Price to Earnings (P/E) ratio was at 23.49.
The stock is part of the Technology sector, categorized under the Business Software & Services industry.
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