Akamai Technologies Inc.
) is set to report third-quarter 2013 results on Oct 23. Last
quarter, the company's earnings per share were in line with the
Zacks Consensus Estimate. Let's see how things are shaping up for
Growth Factors This Past Quarter
The strong growth in Akamai's revenues in the second quarter
was primarily driven by better performances from most of the
solutions. Revenues from Media delivery solutions grew 13.5% year
over year but declined a modest 1.0% quarter over quarter to
$179.4 million. Performance & security solutions revenues
jumped 19.4% year over year, while Service & support systems
achieved the strongest revenue growth in the quarter, up 41.3%
year over year.
We are positive on strong support from International and
emerging markets. Moreover, strong demand for cloud
infrastructure solutions, security, mobile products and online
video will drive top-line growth going forward. However, the
company's significant European exposure is a possible headwind
Our proven model does not conclusively show that Akamai
Technologies will beat earnings this quarter. That is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus
Estimate stand at 38 cents. Hence, the difference is 0.00%.
Zacks Rank #2 (Buy):
Akamai's Zacks Rank #2 when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), with Earnings ESP of +1.99% and a Zacks Rank #1 (Strong
), with Earnings ESP of +1.49% and a Zacks Rank #1.
), with Earnings ESP of +2.29% and a Zacks Rank #2.
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