- Akamai’s 2Q adjusted EPS forecast falls short of estimates, predicting $1.51 to $1.56 instead of the estimated $1.63.
- Foreseen revenue for 2Q also misses estimates, totaling at $967 million to $986 million, below the estimated $996.7 million.
- Adjusted operating margin for 2Q is speculated to be around 28% to 29%, lower than the estimated 29.6%.
- Reviews for the full year foresee adjusted EPS falling between $6.20 to $6.40, less than the $6.73 that was initially estimated.
- The estimated revenue prediction for the year similarly falls short, with $3.95 billion to $4.02 billion compared to the estimated $4.08 billion.
- Yearly adjusted operating margin estimates are at 28% to 29%, less than the previously assumed 30% to 30% and estimated 30%.
- 1Q results show a revenue of $987.0 million, marking a 7.8% yearly increase.
- Security revenue rose 21% yearly to $490.7 million, surpassing the estimate of $478.8 million.
- Delivery revenue fell 11% yearly to $351.8 million, less than the estimated $371.4 million.
- The compute revenue yielded a 25% yearly increase to $144.5 million, higher than the $139.3 million estimate.
- Adjusted EPS for the first quarter was $1.64, more than the $1.40 figure from the year before, beating the $1.61 estimate.
- The updated full-year guidance for 2024 reflects impacts from the strengthening U.S. dollar, cost optimization from a large social media customer, and the slowing industry traffic growth.
- Akamai shares fell 9.1% in post-market trading to $93.15.
Akamai Technologies on Smartkarma
Analyst Coverage of Akamai Technologies on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely following Akamai Technologies. In their report titled “Akamai Technologies – Can The Strong Potential in AI Inferencing Services Catalyze Revenue Growth? – Major Drivers,” they highlighted the company’s robust Q4 2023 results. Akamai reported reaching an impressive revenue of $995 million with a non-GAAP operating margin of 30%. The steady progress was evident with a 23% year-over-year increase in non-GAAP earnings per share. This positive outlook suggests a bullish sentiment towards Akamai’s growth prospects.
In another report by Baptista Research named “Akamai Technologies Inc.: Paving the Way for a Safer,” analysts praised Akamai for exceeding revenue and earnings expectations. The company saw a surge in revenue to $965 million, marking a significant 9% year-over-year growth. The non-GAAP operating margin impressively stood at 31%, with non-GAAP earnings per share reaching $1.63, reflecting a remarkable 29% year-over-year increase. Noteworthy was Akamai’s security segment, which experienced a notable 20% year-over-year growth in Q3. These positive assessments indicate a bullish stance on Akamai’s performance and future potential.
A look at Akamai Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Akamai Technologies has a mixed long-term outlook. While the company shows strength in areas like Value and Growth with scores of 3, it lags in Dividend and Resilience with scores of 1 and 2 respectively. Momentum, with a score of 3, indicates a moderate performance in this aspect. Akamai Technologies, Inc. specializes in enhancing Internet content and application delivery, offering a range of services from streaming video to e-commerce tools.
Overall, the Smart Scores suggest that although Akamai Technologies has solid value and growth prospects, investors may need to pay attention to its dividend payout and resilience factors. With a balanced momentum score, the company may have room for improvement in maintaining its growth trajectory over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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