Cloud technology company Akamai Technologies (NASDAQ: AKAM) will be reporting results this Thursday after the bell. Here’s what investors should know.
Akamai beat analysts’ revenue expectations last quarter, reporting revenues of $1.1 billion, up 5.4% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and full-year revenue guidance meeting analysts’ expectations.
Is Akamai a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Akamai’s revenue to grow 6% year on year, improving from the 5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Akamai rarely misses Wall Street’s revenue estimates.
Looking at Akamai’s peers in the software development segment, some have already reported their Q3 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 3.6%, and Twilio reported revenues up 19.9%, topping estimates by 3%. F5 traded down 20.4% following the results while Twilio was also down 15.2%.
Read our full analysis of F5’s results here and Twilio’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 3.5% on average over the last month. Akamai is down 20.6% during the same time and is heading into earnings with an average analyst price target of $154.24 (compared to the current share price of $85.75).
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