F5 Networks: Stock Rocket After Impressive Quarterly Results

Shares of F5 Networks saw a remarkable increase of 11% after the company reported better-than-expected results for the fourth quarter and provided an optimistic outlook for the upcoming fiscal year. The network security and application delivery specialist also surprised investors with the announcement of a new $1 billion share buyback program. In the fourth quarter, F5 Networks reported an adjusted earnings per share of $3.67, surpassing analysts' expectations of $3.45. The revenue of $746.67 million also exceeded the consensus of $730.39 million, marking a 5.6% year-over-year growth. A significant growth driver was the software segment, which increased by 19% to $228 million. In contrast, revenue in the systems segment fell by 3% to $130 million, while revenues from global services rose by 2% to $388 million. For the first quarter of the fiscal year 2025, F5 Networks expects revenue between $705 million and $725 million, with the midpoint slightly above the consensus of $706 million. The company forecasts an adjusted earnings per share of $3.29 to $3.41 compared to an analyst expectation of $3.37. For the fiscal year 2025, F5 Networks anticipates total revenue growth of 4% to 5% and adjusted earnings per share growth of 5% to 7% compared to 2024. President and CEO François Locoh-Donou expressed satisfaction: "Our results demonstrate the strength of our portfolio and our ability to innovate, the robustness of our business model, and the resilience of our company." Additionally, the board has approved an additional $1 billion share buyback on top of the $422 million remaining in the existing program.