Akamai Technologies (AKAM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

In its upcoming report, Akamai Technologies (AKAM) is predicted by Wall Street analysts to post quarterly earnings of $1.61 per share, reflecting an increase of 15% compared to the same period last year. Revenues are forecasted to be $989.22 million, representing a year-over-year increase of 8%.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Akamai Technologies metrics that Wall Street analysts commonly model and monitor.

The collective assessment of analysts points to an estimated 'Revenue- Security' of $473.18 million. The estimate suggests a change of +16.7% year over year.

Analysts forecast 'Revenue- Compute' to reach $138.81 million. The estimate points to a change of +19.9% from the year-ago quarter.

The average prediction of analysts places 'Revenue- Delivery' at $377.18 million. The estimate suggests a change of -4.4% year over year.

View all Key Company Metrics for Akamai Technologies here>>>

Shares of Akamai Technologies have demonstrated returns of -6.2% over the past month compared to the Zacks S&P 500 composite's -1.6% change. With a Zacks Rank #3 (Hold), AKAM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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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.


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