Earnings To Watch: Akamai (AKAM) Reports Q1 Results Tomorrow

Radek Strnad /
2022/05/02 7:13 am EDT
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Web content delivery and security company Akamai (NASDAQ:AKAM) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Akamai reported revenues of $905.3 million, up 6.98% year on year, beating analyst revenue expectations by 1%. It was a weaker quarter for the company, with a slow revenue growth.

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 7.37% year on year to $904.8 million, slowing down from the 10.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.42 per share.

Akamai Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.76%.

Looking at Akamai's peers in the software development segment, only F5 Networks has so far reported results, with revenues decreasing 1.71% year on year, and in-line with analyst estimates. The stock was down 1.4% on the results. Read our full analysis of F5 Networks's earnings results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have not been spared, with share price down on average 18.4% over the last month. Akamai is down 10.3% during the same time, and is heading into the earnings with analyst price target of $131.6, compared to share price of $108.

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.