Akamai Earnings: What To Look For From AKAM

Jabin Bastian /
2024/02/12 2:02 am EST

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

Last quarter Akamai reported revenues of $965.5 million, up 9.5% year on year, beating analyst revenue expectations by 2.3%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.

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 7.8% year on year to $999.7 million, improving on the 2.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.

Akamai Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1%.

Looking at Akamai's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Cloudflare delivered top-line growth of 32% year on year, beating analyst estimates by 2.7% and F5 reported revenue decline of 1.1% year on year, exceeding estimates by 1.1%. Cloudflare traded up 20.2% on the results, and F5 was up 10.6%.

Read our full analysis of Cloudflare's results here and F5's results here.

There has been positive sentiment among investors in the software development segment, with the stocks up on average 8.2% over the last month. Akamai is up 8.8% during the same time, and is heading into the earnings with analyst price target of $121, compared to share price of $128.9.

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.

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