Web content delivery and security company Akamai (NASDAQ:AKAM) will be reporting results tomorrow after market hours. Here's what to look for.
Akamai met analysts' revenue expectations last quarter, reporting revenues of $987 million, up 7.8% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.
Is Akamai a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Akamai's revenue to grow 4.5% year on year to $977.6 million, in line with the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.53 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Akamai has missed Wall Street's revenue estimates twice over the last two years.
Looking at Akamai's peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cloudflare delivered year-on-year revenue growth of 30%, beating analysts' expectations by 1.6%, and F5 reported a revenue decline of 1%, topping estimates by 1.4%. Cloudflare traded up 6.9% following the results while F5 was also up 13%.
Read our full analysis of Cloudflare's results here and F5's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the software development stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. Akamai's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $112.8 (compared to the current share price of $92.31).
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