F5 Networks Tops Q3 Estimates, Shares Rise

Shares of

jumped more than 5 percent in after-hours trading after the company reported stronger-than-expected results for its fiscal third quarter. The Seattle, Washington-based company posted quarterly earnings of $93.2 million, or $1.29 per share, compared to $79.5 million, or $1.05 per share, in the year-ago quarter. Excluding items, the company earned $1.67 per share. Its revenue climbed 10 percent year-over-year to $483.6 million from $440.3 million. However, analysts were expecting a profit of $1.60 per share on revenue of $481.35 million. The average estimate among 49 Estimize users was for earnings of $1.63 per share and revenue of $483.82 million. Its gross profit climbed to $397.9 million in the recent quarter, compared to $360.8 million in the year-earlier period. "Solid sequential and year-over-year revenue growth during the quarter was driven primarily by continuing growth in software sales," said Manny Rivelo, F5 President and Chief Executive Officer. "Within the past three years, quarterly revenue from the sale of software modules and virtual editions has more than doubled, accounting for more than a third of product revenue in Q3. As more of our customers deploy hybrid solutions and adoption of our software modules increases, we believe this trend will continue, augmented by a steady ramp in sales of our cloud-based Silverline subscription offerings." For the current quarter, F5 projects adjusted earnings of $1.72 to $1.75, on revenue of $500 million to $510 million. Analysts projected earnings of $1.71 per share on revenue of $505 million. F5 Networks shares jumped 5.70 percent to $125.26 in the after-hours trading session.