Strong Orders Help F5 Networks Beat Consensus Estimates And Product Refresh To Start In The Upcoming Quarter

Leading application delivery controller provider, F5 networks (NYSE:FFIV) reported a strong Q3 2016. Though the revenues in Q3 grew only by 2.7% year over year to $497 million, it was above the consensus estimates. The company witnessed strong orders in both hybrid and public cloud environments. F5 said it was seeing demand from its new customers for the implementation of its APM (Access Policy Manager) and WAF(Web Application Firewall) products used to secure cloud-based applications.

Further, starting this quarter, the company will start delivering its new line of products and expects to complete the appliance refresh towards the end of 2016. F5 said that the new appliances, named the Shuttle series, has significant performance improvements. We believe that this upgrade holds the potential to boost the company’s products revenue growth, which has remained low of late in comparison to its service revenue.

F5’s stock price had surged in this quarter following reports that the company retained Goldman Sachs (NYSE:GS) to represent the company in the wake of apparent buyout offers. (For more details check our previous article: Is It Best For F5 Networks To Sell-Off Itself?) However, the company declined to comment on this in the earnings conference call.

Below we look at the key financial metrics as reported by F5 in Q3:

Consensus Estimates’ Source: Reuters

For information, please refer to our complete analysis for F5 Networks

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