F5 Networks shares climb after 2nd-quarter profit jumps 75 percent
By APThursday, April 22, 2010
F5 Networks shares climb after 2Q profit
NEW YORK — Shares F5 Networks Inc., a maker equipment to help manage and route computer network traffic, jumped Thursday after its fiscal second-quarter results showed the strengthening economy is helping demand.
Shares climbed $3.69, or 5.5 percent, to $70.65 in afternoon trading.
Broadpoint Amtech analyst Brian Marshall told clients in a note Thursday that F5 has one of the best business models in the technology industry, with revenue growth of more than 30 percent and an operating profit margin of 32 percent.
And he said F5, which is based in Seattle, is likely to benefit as an improving economy boosts corporate spending on information technology.
He kept a “Buy” rating on the company’s stock and raised his price target to $80 from $76.
After the close of trading Wednesday, the F5 posted a 75 percent jump in quarterly profit. Revenue was up 34 percent to $206.1 million.
