F5 Networks Off 3% Ahead Of Q4 Earnings Release

F5 Networks, Inc. (NASDAQ: FFIV) is set to post earnings Wednesday and is grappling with delayed spending by major telecom customers. But at least one analyst thinks the company will pull through.

F5 Networks makes application delivery controllers that speed up communication networks. The company slid more than 3 percent ahead of its earnings release, trading recently at $116.72 per share.

Cantor Fitzgerald's Brian J. White estimates F5's sequential sales growth will slow to 5 percent from the 7 percent rate of past September quarters. But White maintained a Buy rating and said the company will meet consensus views.

Lower-than-expected demand from telecom customers recently resulted in a disappointing quarter for Juniper Networks, Inc. (NYSE: JNPR) and White said the same market constitutes "a near-term headwind" for F5.

About 20 percent of F5's sales in the recent June quarter came from telecom providers like AT&T and Verizon Communications.

Yet White said F5's market position "has never been stronger" while the company has recently broadened its product line-up.

R.W. Baird's Jayson Noland maintains a Neutral rating on F5, and last month cited "fair degree of uncertainty" in the company's telecom market.