F5 Inc FFIV shares are trading lower Thursday in the wake of the company's fiscal second-quarter results.
- Q2 Revenue: $703 million beat estimates of $699.04 million
- Q2 EPS: $2.53 beat estimates of $2.42
Quarterly revenue was up 11% on a year-over-year basis.
F5 said it will reduce its global headcount by approximately 9%. The company expects the job cuts to result in savings of approximately $130 million per year.
"While customer spending remains pressured by macro-economic uncertainty near term, we are differentiated in our ability to help customers tackle the significant challenges ahead," said François Locoh-Donou, president and CEO of F5.
"Given the persistent macro uncertainty and its impact on customer spending, we now expect low-to-mid single-digit revenue growth in fiscal year 2023 with non-GAAP operating margins of approximately 30% and non-GAAP earnings growth of 7% to 11%."
Third-quarter revenue is expected to be between $690 million and $710 million. Earnings are expected to be in a range of $2.78 to $2.90 per share.
Following the print, Morgan Stanley analyst Meta Marshall maintains F5 with an Equal-Weight and lowered the price target from $175 to $165. Needham reiterated its Buy rating and $175 price target.
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FFIV Price Action: F5 shares were down 8.21% at $125.80 at the time of writing, according to Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.
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