Cloud technology company Akamai Technologies (NASDAQ:AKAM) will be reporting results this Thursday after market hours. Here’s what to expect.
Akamai met analysts’ revenue expectations last quarter, reporting revenues of $1.07 billion, up 5.8% year on year. It was a softer quarter for the company, with full-year EPS guidance slightly missing analysts’ expectations and a slight miss of analysts’ adjusted operating income estimates.
Is Akamai a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Akamai’s revenue to grow 4.8% year on year, slowing from the 6.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Akamai rarely misses Wall Street’s revenue estimates.
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. F5 delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.6%, and Bandwidth reported revenues up 22.2%, topping estimates by 1.4%. F5 traded down 1.1% following the results while Bandwidth was also down 25.7%.
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 9.6% on average over the last month. Akamai is up 10% during the same time and is heading into earnings with an average analyst price target of $158.21 (compared to the current share price of $124.00).
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