F5 Networks Plunges After Earnings Miss

By Jeremy C. Owens Markets MarketWatch Pulse

In its first earnings report after a change at the top, F5 Networks Inc. disappointed investors and saw its stock plunge in late trading. F5, which appointed Fran´┐Żois Locoh-Donou as chief executive in late January, reported fiscal second-quarter net income of $93.1 million, or $1.43 a share, on sales of $518.2 million. After adjustments for stock-based compensation and other effects, the networking company claimed adjusted profit of $1.95 a share. Analysts on average expected adjusted earnings of $2.09 a share, according to FactSet, and F5's forecast called for adjusted profits of $2.01 to $2.04 cents a share. Analysts also expected higher revenue, with an average forecast of $538 million, according to FactSet. F5 stock fell more than 7% in late trading, continuing a tough 2017 for the Seattle company: Shares declined 5.1% year-to-date as of Wednesday's close, while the S&P 500 index gained 6.7% in that time.

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