Earnings Outlook For F5 Networks

On Monday, July 26, F5 Networks FFIV will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, F5 Networks analysts model for earnings of $2.46 per share on sales of $638.14 million. F5 Networks reported a per-share profit of $2.18 when it published results during the same quarter last year. Sales in that period totaled $583.25 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 12.84% increase in the company's EPS figure. Revenue would be up 9.41% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of F5 Networks were trading at $189.96 as of July 22. Over the last 52-week period, shares are up 25.98%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. F5 Networks is scheduled to hold the call at 16:30:00 ET and can be accessed here.