Web content delivery and security company Akamai (NASDAQ:AKAM) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
Akamai met analysts’ revenue expectations last quarter, reporting revenues of $1.00 billion, up 4.1% year on year. It was a slower quarter for the company, with revenue guidance for the next quarter below analysts’ expectations.
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 2.1% year on year to $1.02 billion, slowing from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.52 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Akamai’s peers in the content delivery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 7.2%, and Cloudflare reported revenues up 26.9%, topping estimates by 1.8%. F5 traded up 11.4% following the results while Cloudflare was also up 17.7%.
Read our full analysis of F5’s results here and Cloudflare’s results here.
There has been positive sentiment among investors in the content delivery segment, with share prices up 5% on average over the last month. Akamai is up 4.5% during the same time and is heading into earnings with an average analyst price target of $113.35 (compared to the current share price of $99).
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