F5, a cloud and security services company, forecast second-quarter revenue above Wall Street estimates, citing consistent demand for its cloud services.
F5, a cloud and security services provider, estimated second-quarter revenue above Wall Street projections on Monday, citing steady demand for its cloud services, driving its shares up more than 8% in after-market trade.
F5, which supplies software and hardware for Internet-based applications, has experienced a surge in demand for its enterprise solutions as more organizations digitize and migrate to the cloud.
“Customers are still watching their budgets attentively. However, as we look ahead, we are encouraged by evidence of stabilizing demand trends in all of our major geographic theaters,” F5 CEO François Locoh-Donou stated.
According to LSEG statistics, the Seattle-based company forecasts second-quarter revenue in the range of $675 million to $695 million, compared to an average expectation of $675 million among analysts.
F5 forecasts adjusted earnings per share in the second quarter to range between $2.79 and $2.91, compared to predictions of $2.95.
Due to a lower estimated tax rate in fiscal year 2024, the company increased its annual projection for adjusted profit per share growth to 6% to 8% from 5% to 7%.
Revenue for the first quarter ended December 31 was $692.6 million, exceeding analysts’ average forecast of $685.4 million, according to LSEG data.
Earnings per share were $2.32 in the first quarter, up from $1.20 the previous year.
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