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Akamai (AKAM) Q2 Earnings: What To Expect


Petr Huřťák /
2023/08/07 5:31 am EDT

Web content delivery and security company Akamai (NASDAQ:AKAM) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter Akamai reported revenues of $915.7 million, up 1.33% year on year, in line with analyst expectations. It was a decent quarter for the company, with optimistic revenue guidance for the next quarter.

Is Akamai buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Akamai's revenue to grow 2.96% year on year to $930.1 million, slowing down from the 5.92% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.

Akamai Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.84%.

With Akamai being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software development stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 2.69% over the last month. Akamai is up 1.98% during the same time, and is heading into the earnings with analyst price target of $94.94, compared to share price of $92.63.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.