Akamai Technologies, Inc. AKAM is scheduled to release third-quarter 2024 results on Nov. 7, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 2.6%. AKAM pulled off a trailing four-quarter earnings surprise of 4.68%, on average.
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The company is expected to report higher year-over-year revenues, backed by healthy demand in security and compute verticals. Management’s focus on expanding its portfolio to cater to advanced use cases is a tailwind.
Factors to Note
In the third quarter, Akamai collaborated with Datadog, Inc. to bolster the enterprise's cyber defense capabilities. AKAM aims to combine Akamai Zero Trust Solutions with Datadog's Cloud Security Information and Event Management system to improve the organization’s risk management process and reduce the likelihood of cyber threats.
Akamai has made a significant step in the digital content delivery industry by integrating Yospace into its Qualified Compute Partner Program. This partnership with Yospace is set to bolster Akamai's ability to deliver personalized, high-quality content by leveraging the former's expertise in server-side ad insertion technology. These initiatives are expected to have boosted Akamai’s top line in the quarter under review.
In the quarter under review, AKAM introduced advanced video workflow capabilities at the IBC convention 2024, providing media companies greater flexibility and control over their content delivery chain. This is likely to have improved Akamai’s commercial prospects among media companies who are moving away from centralized cloud models in favor of more portable, scalable cloud-native architectures.
Our estimate for revenues from the security segment is pegged at $522.5 million, suggesting 14.6% year-over-year growth. Our revenue estimate for the compute vertical is pegged at $156.5 million, indicating a 20% year-over-year improvement. Revenues from the delivery segment are projected at $320.2 million.
For the third quarter of 2024, the Zacks Consensus Estimate for revenues is pegged at $1 billion, indicating year-over-year growth from $965.48 million. The consensus estimate for adjusted earnings per share stands at $1.59, suggesting a decline from the $1.63 reported a year ago.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Akamai this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.59. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Akamai Technologies, Inc. Price and EPS Surprise
Akamai Technologies, Inc. price-eps-surprise | Akamai Technologies, Inc. Quote
Zacks Rank: Akamai carries a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Earnings ESP for Fortinet FTNT is +1.25%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report quarterly numbers on Nov 7.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Qualcomm Technologies, Inc. QCOM is +0.48%, and it currently carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 6.
The Earnings ESP for Arista Networks, Inc. ANET is +0.72%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report its quarterly numbers on Nov. 7.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
