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Here is how F5 Networks (FFIV) and Monday.com (MNDY) have performed compared to their sector so far this year.
F5 stock (NASDAQ: FFIV) was up 10% on Tuesday, October 29, after the company posted upbeat Q4 results and a better than anticipated guidance for 2025. It posted revenue of $747 million and adjusted earnings of $3.67 per share, compared to the consensus estimate of $730 million and $3.45, respectively.
F5 Networks saw stabilized System demand and robust Software growth in Q4, supported by AI use cases, leading to a return to topline growth. Much of this is the result of improved market conditions, with F5 now moving past COVID related supply chain bullwhip headwinds. Infrastructure demands created by the deployment of AI are also creating an opportunity for F5's app and API security and delivery platform.
FFIV's Q4 results reflect the benefits of strong performance in its Software division.
I recommend a buy rating for FFIV, expecting a 15% one-year upside driven by enterprise spending recovery and margin expansion. FFIV's 4Q24 results exceeded expectations with strong revenue and profitability, indicating robust demand and successful cross-selling during renewals. Potential risks include declining ARR, macroeconomic headwinds, and higher tariffs, but growth acceleration and margin expansion present upside potential.
F5, Inc. (FFIV) Q4 2024 Earnings Call Transcript
F5 Networks (FFIV) came out with quarterly earnings of $3.67 per share, beating the Zacks Consensus Estimate of $3.45 per share. This compares to earnings of $3.50 per share a year ago.
F5, Inc. FFIV will release earnings results for its fourth quarter, after the closing bell on Monday, Oct. 28.
FFIV's fourth-quarter fiscal 2024 results are likely to benefit from strength in its Software division, offset by the Systems division's underperformance.
F5 (FFIV) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
F5 Inc. has shown improved margins despite declining product revenues, thanks to a shift towards higher-margin services and efficient cost management. Analysts expect a return to growth in Q4, with projected revenues of $731m and adjusted EPS between $3.38 and $3.50. I'm cautious about starting a position until I see how management plans to leverage AI opportunities and rejuvenate top-line growth in 2025.