- Akamai has raised its FY adjusted EPS forecast from $5.87-$5.95 to $6.08-$6.13, beating the estimate of $5.92.
- The company’s revenue forecast has also increased from $3.77 billion-$3.80 billion to $3.80 billion-$3.82 billion, exceeding the estimated $3.78 billion.
- The adjusted operating margin is still expected to be between 29% to 29%.
- For the fourth quarter, Akamai predicts an adjusted EPS of $1.57-$1.62, higher than the estimated $1.54.
- The company also expects fourth quarter revenue to be between $985 million to $1.01 billion, surpassing the estimated $986.9 million.
- Third quarter results showed revenue of $965.5 million, a 9.5% increase year on year, beating the estimate of $944.1 million.
- Security revenue for the third quarter was at $455.8 million, a 20% increase year on year, exceeding the estimated $442.5 million.
- Delivery revenue stood at $379.3 million, marking a 3.5% decrease year on year, but still surpassing the estimate of $372.9 million.
- Compute revenue for the third quarter was $130.4 million, a 19% increase year on year, beating the estimate of $128.4 million.
- The adjusted EPS for the third quarter was $1.63, higher than the $1.26 of the previous year and beating the estimate of $1.50.
- Akamai stocks have 11 buys, 11 holds, and 2 sells.
Akamai Technologies on Smartkarma
Akamai Technologies is seeing a lot of positive analyst coverage on Smartkarma, an independent investment research network. According to research reports from Baptista Research, the company delivered a positive result and managed an all-around beat last quarter. The report went on to say that Akamai is pursuing a completely different approach to cloud computing, making it fully distributed with many more points of presence than typical systems provide. The acquisition-led growth continues with Neosec, as Akamai managed to exceed analyst expectations in terms of revenue as well as earnings. This complements the API security portfolio of Akamai by extending its capabilities in the rapidly growing API security market.
Overall, the sentiment towards Akamai Technologies on Smartkarma is bullish. The research reports from Baptista Research indicate that the company is taking the right steps to achieve success in the cloud computing industry, and the acquisition of Neosec has further extended the capabilities of Akamai. As the company continues to focus on its core strengths, investors can expect the stock to perform well in the future.
A look at Akamai Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
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
Akamai Technologies, Inc. is a company that provides services to accelerate and improve the delivery of content and applications over the Internet. It offers a wide range of capabilities from live and on-demand streaming video to conventional content on websites, as well as tools to help people transact business and reach out to new and existing customers. The Smartkarma Smart Scores provide an overall outlook for this company, and the scores of 2, 1, 3, 3, and 5 indicate a positive long-term outlook. Akamai Technologies, Inc. is well-positioned for growth and resilience, with strong momentum.
The Smartkarma Smart Scores provide investors and analysts with an insight into the long-term outlook for Akamai Technologies, Inc. The scores of 2, 1, 3, 3, and 5 indicate a positive outlook for the company, with a focus on growth and resilience. The company also has strong momentum, which should help it continue to be successful in the future. All in all, the scores indicate a strong long-term outlook for Akamai Technologies, Inc.
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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