Benzinga | Jan 25, 2021 10:22AM EST

Earnings Outlook for F5 Networks

On Tuesday, January 26, F5 Networks (NASDAQ:FFIV) will release its latest earnings report. Benzinga's outlook for F5 Networks is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect F5 Networks earnings of $2.46 per share. Revenue will likely be around $625.27 million, according to the consensus estimate. In the same quarter last year, F5 Networks posted EPS of $2.55 on sales of $569.30 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 3.53% decrease for the company. Sales would be up 9.83% on a year-over-year basis. F5 Networks's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.37 2.03 1.95 2.43EPS Actual 2.43 2.18 2.23 2.55Revenue Estimate 606.29 M 571.94 M 559.04 M 565.96 MRevenue Actual 614.82 M 583.25 M 583.45 M 569.30 M

Stock Performance

Over the last 52-week period, shares of F5 Networks are up 66.21%.

Do not be surprised to see the stock move on comments made during its conference call. F5 Networks is scheduled to hold the call at 16:30:00 ET and can be accessed here.