F5 Networks sees massive share plunge
The networking equipment vendor gets drubbed in the after hours as investors react to its first-quarter report.
Profit wasn't the problem for the networking equipment vendor. Instead, the company disappointed with its revenue and its forecast for the current quarter. F5 reported $55.7 million, or 68 cents a share, in net income, which was up dramatically from $29.3 million, or 36 cents a share, in the year ago quarter.
Once you take out the impact of stock-based compensation, F5 ended up beating analyst expectations of 83 cents a share by 5 cents. Not bad.
But the company said its quarterly revenue was only $268.9 million, a bit shy of the $271 million Wall Street wanted to see. That alone would have probably been OK with investors. But let's move on to guidance.
F5 said it expects profit at 84 cents to 86 cents for the second quarter on revenue of $275 million to $280 million. That's a little below analyst estimates of 85 cents on revenue of $281 million.
All in all, this wasn't a disastrous report. But F5 Networks has been on a huge run over the last year, as the chart shows. The intense sell-off in the after-hours is a clear sign that investors think this baby has peaked.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on an upbeat note with blue chips showing relative strength for the second consecutive day. The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%) settled ahead of the Russell 2000 (+0.2%) and the Nasdaq Composite (+0.1%). It is worth mentioning the benchmark index posted its fourth consecutive gain, registering a new record closing high at 1992.38.
Equity indices climbed out of the gate thanks to early strength among ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'