F5 Networks, Inc. (NASDAQ:FFIV) Shoots Higher on Earnings


F5 Networks, Inc. (NASDAQ:FFIV) shot higher Thursday, boosted by an earnings beat, good guidance and rating and price upgrades.

The stock closed Thursday at $130.99, up 9.58%, on volume of 5.09 million shares.

Technically, shares of FFIV have ranged between $70 and $140 over the past five years, and investors can expect meaningful upside only if the stock pierces the $140 level.

F5 is a developer of application delivery services and helps organizations scale cloud, data center, telecommunications, and software defined networking (SDN) deployments to deliver applications and services wherever and whenever required.

F5 Networks, Inc. (NASDAQ:FFIV) in the fiscal fourth quarter

For its fiscal fourth quarter F% reported EPS of $2.11 which beat by $0.17 and revenue of $525.35 million, which beat by $5.03 million and was up 4.8% year on year.

For Q1 of 2017, the company expects revenue of $510M-$520M and EPS in the range of $1.92-$1.95.

“Both revenue and earnings for the fourth quarter of FY16 came in above our guidance as a result of solid year-over-year sales growth in the Americas, APAC, and Japan, and healthy demand for our existing products ahead of our appliance refresh that began rolling out in mid-September,” said Andy Reinland, EVP and CFO.

F5 generated $204 million in cash flow from operations during the quarter, which contributed to cash and investments totaling $1.16 billion as at the end of the quarter and year.

F5 Networks, Inc. (NASDAQ:FFIV) analyst upgrades

Analysts at Piper Jaffray upgraded F5 from Neutral to Overweight. At Wunderlich, analysts retained their Hold rating but moved up their price target from $110 to $130.

At RBC, analyst Matthew Hedberg boosted the price target from $120 to $127.

Jefferies raised their price target to $120, but reiterated their hold rating. “While we think the organization is executing quite well right now, the risk/reward on the stock remains balanced, in our view,” they said.

However, Drexel Hamilton raised their PT to $160.


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