Web content delivery and security company Akamai (NASDAQ:AKAM) will be reporting results tomorrow after the bell. Here’s what investors should know.
Akamai met analysts’ revenue expectations last quarter, reporting revenues of $1.02 billion, up 2.5% year on year. It was a softer quarter for the company, with full-year guidance of slowing revenue growth.
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 2.5% year on year to $1.01 billion, slowing from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 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 software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.7%, and Datadog reported revenues up 24.6%, topping estimates by 2.8%. F5’s stock price was unchanged following the results.
Read our full analysis of F5’s results here and Datadog’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 17% on average over the last month. Akamai is up 23.3% during the same time and is heading into earnings with an average analyst price target of $102.22 (compared to the current share price of $84.10).
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