Here's Why You Should Offload F5 Networks (FFIV) Stock
Zacks Investment Research | Aug 09, 2017 10:06PM ET
On Aug 9, Zacks Investment Research downgraded F5 Networks, Inc. (NASDAQ:FFIV) to a Zacks Rank #5 (Strong Sell).
The downgrade can be primarily attributed to negative estimate revisions over the last 30 days. Notably, the Zacks Consensus Estimate for fiscal 2017 has declined 1.1% to $6.28 over the said period. For fiscal 2018, the Zacks Consensus Estimate is pegged at $6.87, reflecting a 5.1% decline over the same time frame.
The negative estimate revision was primarily due to dismal third-quarter fiscal 2017 results, where both the top and the bottom line missed the Zacks Consensus Estimate. Adjusted earnings per share (excluding amortization of intangible assets and other one-time items but including stock-based compensation) on a proportionate tax basis of $1.55 missed the Zacks Consensus Estimate of $1.59 per share.
Moreover, revenues of $517.8 million missed the consensus mark of $525 million. It also fell short of the lower range of management’s guidance range of $520–$530 million. Disappointing fourth quarter revenue guidance also fumed pessimism over the stock’s growth prospect.
We also note that F5 Networks has lost 18% of its value year to date against 17.3% growth of the Zacks Investment Research
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