Web content delivery and security company Akamai (NASDAQ:AKAM) will be reporting results tomorrow after market hours. Here's what investors should know.
Last quarter Akamai reported revenues of $965.5 million, up 9.5% year on year, beating analyst revenue expectations by 2.3%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.
Is Akamai buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Akamai's revenue to grow 7.8% year on year to $999.7 million, improving on the 2.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1%.
Looking at Akamai's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Cloudflare (NYSE:NET) delivered top-line growth of 32% year on year, beating analyst estimates by 2.7% and F5 reported revenue decline of 1.1% year on year, exceeding estimates by 1.1%. Cloudflare traded up 20.2% on the results, and F5 was up 10.6%.
Read the full analysis of Cloudflare's and F5's results on StockStory.
There has been positive sentiment among investors in the software development segment, with the stocks up on average 8.2% over the last month. Akamai is up 8.8% during the same time, and is heading into the earnings with analyst price target of $121, compared to share price of $128.9.