CALX - F5 Inc.: Why I'm Still Sitting On The Sidelines (Q2 Earnings Preview)

2024-04-24 13:56:56 ET

Summary

• F5 is expected to announce Q2 financial results, with analysts predicting a decline in revenue but an increase in profitability.
• The company's declining revenue and current stock price make it difficult to be bullish on F5 at the moment.
• F5's profitability metrics, such as adjusted earnings per share, are forecasted to increase year over year, but this isn't enough to pull me off the sidelines.

After the market closes on April 29, the management team at F5, Inc. ( FFIV ) is expected to announce financial results covering the second quarter of the company's 2024 fiscal year. Leading up to that point in time, analysts seem bearish from a revenue perspective but bullish when it comes to profitability. This follows a trend that the company has developed as of late whereby revenue has been on the weak side but profitability has been rising. For a value investor like myself, profitability is the most important metric to pay attention to. However, when you look at the declining revenue and how shares are priced, I can't become bullish just yet....

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