Earnings Estimates Report: F5 Networks, Inc. (NASDAQ:FFIV)

F5 Networks, Inc. (NASDAQ:FFIV) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $1.68 per share on revenue of $483.68M. Analysts had been modeling earning per share of $1.63 with $485.93M in revenue.

F5 Networks, Inc. (NASDAQ:FFIV) announced revenue of $483.7 million, up 2 percent from $472.1 million in the second quarter of fiscal 2015.

GAAP net income was $75.4 million ($1.11 per diluted share), compared to $85.7 million ($1.18 per diluted share) in the second quarter a year ago. This result reflects the jury verdict and other associated costs with that patent litigation during the quarter.

Excluding the impact of this patent litigation expense, stock-based compensation and amortization of purchased intangible assets, non-GAAP net income was $114.0 million ($1.68 per diluted share), compared to $115.3 million ($1.59 per diluted share) in the second quarter of last year.

A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.

Share Repurchase Program

The company also announced today that its board of directors had authorized an additional $1 billion for the company’s common stock share repurchase program. This new authorization is incremental to the $73.8 million currently unused in the existing program which was initially authorized in October 2010.

Acquisitions for the share repurchase program will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other factors including but not limited to price, regulatory requirements and capital availability. The program does not require the purchase of any minimum number of shares and the program may be modified, suspended or discontinued at any time.

F5 Networks, Inc. earnings per share showed an increasing trend of 23% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 787%.Analysts project EPS growth over the next 5 years at 12.18%. It has EPS annual growth over the past 5 fiscal years of 22% when sales grew 16.8. It reported 2.5% sales growth, and -5.7% EPS decline in the last quarter.

The stock is trading at $110.2, up 28.09% from 52-week low of $86.03. The stock trades down -18.49% from its peak of $135.2 and 0.69% above the consensus price target of $110.96. Its volume clocked up at 1.1 million shares which is higher than the average volume of 0.91 million shares. Its market capitalization currently stands at $7.29B.