F5 Networks (NASDAQ:FFIV) unveils its next round of earnings this Tuesday, April 27. Get prepared with Benzinga’s ultimate preview for F5 Networks’s Q2 earnings.
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 covering F5 Networks modeled for quarterly EPS of $2.39 on revenue of $635.98 million. In the same quarter last year, F5 Networks reported earnings per share of $2.23 on sales of $583.45 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.
If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 7.17%. Sales would be have grown 9.0% from the same quarter last year. Here is how the company’s reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.46 | 2.37 | 2.03 | 1.95 |
| EPS Actual | 2.59 | 2.43 | 2.18 | 2.23 |
| Revenue Estimate | 625.27 M | 606.29 M | 571.94 M | 559.04 M |
| Revenue Actual | 624.62 M | 614.82 M | 583.25 M | 583.45 M |
Stock Performance
Over the last 52-week period, shares are up 48.22%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
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.
