- Akamai’s first-quarter adjusted EPS forecast is between $1.54 and $1.59, which is below the market estimate of $1.61.
- The first-quarter revenue is projected to be between $1.00 billion and $1.02 billion, missing the estimate of $1.04 billion.
- For the full year, Akamai forecasts adjusted EPS ranging from $6.00 to $6.40, under the estimate of $6.82.
- Full-year revenue is anticipated between $4.00 billion and $4.20 billion, compared to the estimate of $4.25 billion.
- The adjusted operating margin for the year is expected to be around 28%, falling short of the estimated 29.2%.
- In the fourth quarter, Akamai reported revenue of $1.02 billion, marking a 2.5% increase year-over-year and matching the estimate.
- Security revenue for the fourth quarter was $534.6 million, a 14% increase year-over-year, slightly above the estimate of $534.5 million.
- Delivery revenue decreased by 18% year-over-year to $317.8 million, but still exceeded the estimate of $313.4 million.
- Compute revenue rose by 24% year-over-year to $167.5 million, marginally surpassing the estimate of $167.2 million.
- The adjusted EPS for the fourth quarter was $1.66, down from $1.69 year-over-year, yet above the estimate of $1.52.
- The stock has 18 buy ratings, 6 hold ratings, and 1 sell rating from analysts.
Akamai Technologies on Smartkarma
Analysts like Baptista Research have been actively covering Akamai Technologies on Smartkarma, providing valuable insights for investors. In their report titled “Akamai Technologies: Cloud Computing Expansion As A Primary Growth Accelerator! – Major Drivers,” Baptista Research highlights the company’s financial achievements in the third quarter of 2024. Noteworthy points include Akamai’s revenue exceeding $1 billion for the first time with a 4% year-over-year increase, and its annual revenue run rate surpassing $4 billion, showing strong growth potential.
In another report by Baptista Research titled “Akamai Technologies: Will The Acquisition of API Security Leader Noname Security Be A Game Changer? – Major Drivers,” the focus shifts to Akamai’s second quarter of 2024 earnings presentation. Despite industry challenges, the company demonstrated a 5% increase in total revenue, amounting to $980 million, driven by growth in security and compute sectors. Baptista Research delves into the potential impact of Akamai’s acquisition of Noname Security on its future performance, hinting at strategic shifts and valuation considerations using a Discounted Cash Flow methodology.
A look at Akamai Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
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
According to the Smartkarma Smart Scores, Akamai Technologies shows a balanced long-term outlook across various factors. With solid scores in Value, Growth, Resilience, and Momentum, the company seems well-positioned for future growth and sustainability. Akamai’s services in accelerating content and applications over the Internet, including live video streaming and business tools, reflect a company focused on innovation and meeting diverse customer needs.
While the company’s Dividend score is lower, its strength in other areas suggests a focus on reinvestment for future expansion and technological advancement. Overall, Akamai Technologies appears to have a positive outlook driven by its consistent performance across key metrics, making it a company to watch for potential long-term investment opportunities.
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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