Web content delivery and security company Akamai (NASDAQ:AKAM) will be reporting earnings tomorrow after the bell. Here’s what to expect.
Akamai met analysts’ revenue expectations last quarter, reporting revenues of $979.6 million, up 4.7% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates.
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 3.5% year on year to $999.5 million, slowing from the 9.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.59 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 Q3 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 2.2%, and Bandwidth reported revenues up 27.5%, topping estimates by 6.5%. F5 traded up 10% following the results while Bandwidth’s stock price was unchanged.
Read our full analysis of F5’s results here and Bandwidth’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 7% 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 $115.39 (compared to the current share price of $101.12).
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