F5 Networks to buy back $1 billion in stock over the next 2 years

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Shares of F5 Networks Inc. jumped 6.9% in premarket trading Monday, after the networking software company announced plans to repurchase $1 billion worth of stock through fiscal 2022. The buyback plan includes the accelerated repurchase of $500 million worth of stock in fiscal 2021. The company said it targets double-digit adjusted earnings per share growth over the next two years and revenue growth (compound annual growth rate) of 6% to 7%, including software revenue growth CAGR of 35% to 40%. The company’s announcement comes ahead of F5’s analyst and investor gathering scheduled for Nov. 18. “As shown in our recent results, we have reached an inflection point in our transformation story where operating margins are poised to expand and revenue will accelerate, leading to sustainable double-digit non-GAAP EPS growth,” said Chief Executive François Locoh-Donou. The stock has gained 3.4% year to date through Friday, while the S&P 500 has advanced 8.6%.
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