:max_bytes(150000):strip_icc()/GettyImages-985709654-3c8ae2ff6cb5434ab2c709efe1bc5757.jpg "F5 Stock Jumps After Sales Guidance Tops Forecasts—Key Price Levels to Watch")
Key Takeaways
- F5 shares moved sharply higher in pre-market trading Tuesday after the cloud management and security software company announced fiscal second-quarter sales guidance that beat analysts’ expectations.
- Sales growth in the company’s Asian and European markets helped offset weakness in its North American market.
- The F5 share price continues to gain upward momentum, but may encounter resistance near the March 2022 swing high at the $217 level.
F5, Inc.
Source: TradingView.com.
F5, Inc. (FFIV) shares were sharply higher ahead of Tuesday’s opening bell after the cloud management and application security company delivered a better-than-expected quarterly earnings report and provided current-quarter sales guidance that came in ahead of the Street forecast.
For the fiscal first quarter, the Seattle-based company reported adjusted earnings of $3.43 per share, up from $2.47 a share in the prior year’s corresponding quarter and ahead of the $3.04 figure analysts had expected. Although revenue of $693 million for the period contracted 1% from a year earlier, it exceeded the consensus forecast of $685 million, boosted by a 7% year-over-year (YOY) increase in the company’s Global Services segment. Revenue came in near the high end of F5’s guidance range, while eanings per share (EPS) exceeded the company’s guidance, CEO François Locoh-Donou noted in a statement accompanying the quarterly results.
The cloud security software maker said it expects sales in the current quarter to range between $675 to $695 million, comfortably ahead of Wall Street’s projection of $673 million. Locoh-Donou said that he anticipates client budgets to remain tight in 2024, but remains encouraged by stabilizing demand across the company’s geographic regions. During the first quarter, revenue growth of 8% and 5% in F5’s Asian and European markets, respectively, helped offset a 5% decline in the North American market.
Since finding a floor of support near the 200-day moving average in late October, FFIV shares have continued to trend higher. More recently, the price has successfully retested key support at $173.50 and continues to gain upward momentum. Important chart levels to monitor include the $217 area that may encounter resistance from the March 2022 swing high, and the trailing 50-day moving average, which could provide support during periods of profit taking.
F5 shares were up 9% at $16.75 about two hours before the opening bell on Tuesday. As of Monday’s close, the stock had gained 27% over the past year.
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