Why F5 Shares Are Surging Tuesday

F5 Inc FFIV shares are trading higher Tuesday after the company reported reported better-than-expected financial results. Multiple analysts raised price targets following the print. 

• Q3 Revenue: $702.64 million beat estimates of $699.39 million
• Q3 EPS: $3.21 beat estimates of $2.86

Total revenues were up 4% year-over-year. Global services revenue climbed 8%, and product revenue increased 1%, although software sales were down 3%. 

"In an environment that remains challenged by macroeconomic uncertainty, our team is executing well, delivering third-quarter revenue at the midpoint of our guidance range and earnings per share well above the high end of our guidance range. We are seeing some early signs of demand stabilization," said François Locoh-Donou, president and CEO of F5.

Q4 Outlook: F5 sees fiscal fourth-quarter revenue in the range of $690 million to $710 million versus analyst consensus of $701.94 million. Earnings are expected to be between $3.15 and $3.27 per share versus analyst consensus of $3.22.

See Also: Why Dover Shares Are Sliding Today

Analyst Assessment: 

• Keybanc analyst Thomas Blakey maintained F5 with an Overweight and raised the price target from $179 to $193.
• Needham analyst Alex Henderson maintained F5 with a Buy and raised the price target from $175 to $180.
• Barclays analyst Tim Long maintained F5 with an Equal-Weight and raised the price target from $140 to $162.
• RBC Capital analyst Matthew Hedberg maintained F5 with a Sector Perform and raised the price target from $146 to $173.
• Morgan Stanley analyst Meta Marshall reiterated F5 with an Equal-Weight and maintained a $165 price target.

FFIV Price Action: F5 shares were up 5.67% at $158.73 at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.