F5 stock pops more than 12% after earnings beat

F5 Inc. [s:ffiv] shares rose more than 12% in after-hours trading Monday after a fiscal third-quarter earnings beat, bouncing back from weakness that sprung up after executives provided weak guidance for the quarter. F5 reported profit of $83 million, or $1.37 a share, on sales of $674 million, up from $652 million a year ago. After adjusting for share-based compensation and other effects, the networking-equipment and software company reported earnings of $2.57 a share, down from $2.76 a share a year ago. Analysts on average expected adjusted earnings of $2.23 a share on sales of $667 million, after F5 executives' guidance came in well lower than expectations three months ago as well as six months ago. "Demand for security across all customer verticals fueled sales in our third quarter resulting in 4% total revenue growth despite ongoing semiconductor shortages," Chief Executive François Locoh-Donou said in a statement. Executives' fourth-quarter guidance was stronger, calling for adjusted earnings of $2.45 to $2.57 a share on sales of $680 million to $700 million. Analysts on average were expecting $2.28 a share on revenue of $689 million, according to FactSet. Shares topped $175 in after-hours trading, after closing with a 0.3% increase at $154.51; they have declined 36.9% so far this year as the S&P 500 index has dropped 16.9%.

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