Akamai Earnings Preview: Revenues Set To Grow Again

+5.85%
Upside
110
Market
116
Trefis
AKAM: Akamai logo
AKAM
Akamai

Akamai (NASDAQ:AKAM) is scheduled to report its Q4 2017 earnings on February  6th. The company reported strong numbers last quarter and reported growth across Performance & Security Solutions and Service & Support solutions. However, Media Content Delivery Solutions revenue declined as some of the company’s largest customers such as Amazon, Apple, Facebook, Google, Microsoft, and Netflix deployed content delivery networks (CDNs) of their own. While we expect the company to report continued growth in CDN services from small and medium-sized businesses, growth will likely once again be constrained by its largest customers. Despite the lackluster CDN growth, we expect solid growth in revenues from Performance & Security Solutions as secular growth is spurring demand for more secure content delivery. We have created an interactive dashboard that illustrates our Q4 expectations for Akamai. While we expect revenues to grow by 6% y-o-y to $653 million, net income and EPS are expected to decline due to growth in R&D, SG&A and marketing expenses. You can modify the revenue and operating profit expectations for each division to see how the EPS will be affected in Q2 2018.

At present, we have a $53 price estimate for Akamai, which is below the current market price.

Relevant Articles
  1. Akamai Stock Has Seen Little Change Since 2021. Will A Q3 Earnings Beat Drive The Stock Higher?
  2. What To Expect From Akamai’s Q2 Earnings?
  3. Cloud Business In Focus As Akamai Reports Q1 Results
  4. Will Akamai’s Cloud Computing Push Pay Off?
  5. Up Almost 6% Last Month, Can Akamai Continue Its Run?
  6. Here’s Why Akamai Stock Has Failed To Outperform The S&P Since 2017

View Interactive Institutional Research (Powered by Trefis):

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology