F5 forecasts profit above estimates on new product sales
(Reuters) - Network gear maker F5 Networks Inc (FFIV.O) forecast current- quarter profit above market expectations, counting on higher demand for the new products that helped the company beat estimates in the third quarter.
Shares of the company rose 7.5 percent in post-market trade.
F5 said it expects fourth-quarter adjusted earnings of $1.17 to $1.20 per share on revenue of between $378 million and $388 million.
Analysts on average were expecting earnings of $1.17 per share on revenue of $380.6 million, according to Thomson Reuters I/B/E/S.
F5's third-quarter revenue rose 5 percent to $370.3 million.
Net income fell to $68.2 million, or 86 cents per share, from $72.3 million, or 91 cents per share, a year earlier.
Excluding items, the company earned $1.12 per share.
Analysts on average had expected earnings of $1.08 per share on revenue of $361.64 million.
F5 supplies data traffic management equipment to major U.S. service providers such as AT&T (T.N) and Verizon Communications Inc (VZ.N).
Rival Juniper Networks Inc (JNPR.N) forecast current-quarter results largely above analyst estimates on Tuesday, after reporting a better-than-expected second quarter as spending by telecom service providers recovers. <ID: nL4N0FT3WJ>
F5 shares closed at $81.42 on the Nasdaq on Wednesday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)