F5, Inc. FFIV is set to announce its first-quarter fiscal 2024 results on Jan 29. The company estimates revenues between $675 million and $695 million, with the midpoint at $685 million. Meanwhile, the Zacks Consensus Estimate for revenues is $687.1 million, indicating a modest 1.9% decline from the year-ago quarter’s sales of $700.4 million.
Expected non-GAAP earnings range between $2.97 and $3.09 per share, with the midpoint at $3.03. The Zacks Consensus Estimate for earnings stands at $3.03 per share, representing a year-over-year increase of approximately 22.7%. Notably, F5 has consistently surpassed earnings estimates in the past four quarters, with an average beat of 7.8%.
F5, Inc. Price and EPS Surprise
F5’s first-quarter performance may have been impacted by persistent macro uncertainty, particularly affecting customer spending, and in turn, the Product segment which includes Software and Systems subdivisions. A projected year-over-year decline of 6.2% is estimated for the Product segment’s revenues, with the Systems’ revenues expected to decrease by 13.7%.
Conversely, the Software segment is anticipated to have experienced an uplift, with an expected increase of 1.5% in revenues year-over-year. This could be attributed to an improving demand for F5’s software solutions, driven by the accelerating BIG-IP and NGINX subscription software deals, and a positive impact of cost-saving initiatives.
Earnings Predictions
However, our model does not definitively predict an earnings beat for F5 this time. Although a combination of positive Earnings ESP and a Zacks Rank of #1, #2, or #3 usually increases the chances of an earnings beat, this is not the case with F5, which currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks with Potential Earnings Beats
Per our model, companies like Amazon, Apple, and Meta Platforms have the right combination of elements to potentially post earnings beats in their upcoming releases. For instance, Amazon is expected to report fourth-quarter 2023 results on Feb 1, with a Zacks Rank #2 and an Earnings ESP of +1.58%. Additionally, both Apple and Meta Platforms are anticipated to deliver positive results based on our model’s analysis.
As we await F5’s earnings report, the market’s attention will undoubtedly shift to these tech giants and their respective performances.
Disclaimer: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
