F5 Networks’ Stock Soars As A Result Of Strong Q4’16 Results

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The leading provider of Application Delivery Controllers (ADCs), F5 Networks (NYSE:FFIV) reported better-than-expected Q4’16 results on October 26th, inducing a 10% increase it its stock price.  F5 beat its own guidance for Q4 by posting a year-over-year revenue gain of 5%. Further, F5’s near-term growth outlook remains strong as the company recently launched an upgrade of its BIG-IP appliances, called the Shuttle-Series. F5 believes its Shuttle-Series appliances are most programmable cloud-ready ADC (Application Delivery Controller).

Screen Shot 2016-10-27 at 5.00.53 PM

Source: Sec-filings

F5 Increasingly Focussed On Enhancing Its Security Offerings

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Though F5 is being challenged by native cloud-based service providers in the ADC market, its products are being increasingly used in both the private and public clouds to thwart security threats. Thus, despite the fact that F5 can lose some of its  market share in the ADC market to cloud vendors, its strong security offering can potentially offset revenue declines resulting from the changing landscape of the ADC market.

In the Q4 earnings conference call, the company said that its customers were increasingly leveraging its products to implement security features. In addition, F5 is witnessing strong demand for its proxy-based security solutions to be deployed across on-premise, off-premise and public-cloud infrastructures such as Amazon Web Services and Microsoft Azure.

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

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