We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Healthy Revenue Growth Boost Akamai's (AKAM) Q2 Earnings?
Read MoreHide Full Article
Akamai Technologies, Inc. (AKAM - Free Report) is scheduled to release second-quarter 2024 results on Aug 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 1.86%. It pulled off a trailing four-quarter earnings surprise of 5.44%, on average. The company is expected to report higher revenues year over year, 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 at Play
During the quarter, Akamai strengthened its security portfolio with the acquisition of a top application programming interface (API) security vendor, Noname Security, for approximately $450 million. The deal aligned with Akamai's strategy to innovate and expand its security offerings, ensuring comprehensive protection for customers’ digital assets. It is expected to enhance Akamai’s ability to safeguard API traffic across diverse environments and deployments. The integration is set to create a unified product, Akamai API Security, combining the best of both companies’ technologies. This is likely to have positively impacted its second-quarter results.
Yospace, a digital video distribution company specializing in managing and optimizing digital media assets, joined the Akamai Qualified Computing Partner Program. By leveraging advanced technology and Akamai's robust content delivery network, Yospace aims to enhance viewer engagement for broadcasters and content providers through scalable advertising solutions on the Akamai Connected Cloud platform.
Additionally, in the to-be-reported quarter, Akamai inked a partnership with EZDRM Inc. to strengthen its security services within the Akamai cloud. This initiative is set to improve the distribution of premium content by ensuring low-latency streaming across a wide range of devices via the Akamai Connected Cloud. These developments are likely to have contributed positively to Akamai’s revenues in the second quarter.
In the to-be-reported quarter, Akamai integrated NVIDIA's RTX 4000 Ada Generation GPUs into its cloud portfolio, setting a new benchmark for media processing efficiency. This integration is anticipated to deliver a staggering 25x increase in frames per second compared to traditional CPU methods, thereby enhancing productivity for media and entertainment firms.
Beyond media applications, the versatile NVIDIA GPUs also promise to improve performance across various industries, including AI, machine learning, scientific computing, and gaming. This collaboration not only underscores the technological prowess of both companies but also heralds a new era of efficiency and agility for businesses operating in the media and entertainment landscape. This, in turn, is likely to have resulted in incremental revenues in the quarter.
For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $976 million, indicating year-over-year growth from $932 million. The consensus estimate for adjusted earnings per share stands at $1.54, indicating growth from $1.41 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 $1.54. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Image: Shutterstock
Will Healthy Revenue Growth Boost Akamai's (AKAM) Q2 Earnings?
Akamai Technologies, Inc. (AKAM - Free Report) is scheduled to release second-quarter 2024 results on Aug 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 1.86%. It pulled off a trailing four-quarter earnings surprise of 5.44%, on average. The company is expected to report higher revenues year over year, 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 at Play
During the quarter, Akamai strengthened its security portfolio with the acquisition of a top application programming interface (API) security vendor, Noname Security, for approximately $450 million. The deal aligned with Akamai's strategy to innovate and expand its security offerings, ensuring comprehensive protection for customers’ digital assets. It is expected to enhance Akamai’s ability to safeguard API traffic across diverse environments and deployments. The integration is set to create a unified product, Akamai API Security, combining the best of both companies’ technologies. This is likely to have positively impacted its second-quarter results.
Yospace, a digital video distribution company specializing in managing and optimizing digital media assets, joined the Akamai Qualified Computing Partner Program. By leveraging advanced technology and Akamai's robust content delivery network, Yospace aims to enhance viewer engagement for broadcasters and content providers through scalable advertising solutions on the Akamai Connected Cloud platform.
Additionally, in the to-be-reported quarter, Akamai inked a partnership with EZDRM Inc. to strengthen its security services within the Akamai cloud. This initiative is set to improve the distribution of premium content by ensuring low-latency streaming across a wide range of devices via the Akamai Connected Cloud. These developments are likely to have contributed positively to Akamai’s revenues in the second quarter.
In the to-be-reported quarter, Akamai integrated NVIDIA's RTX 4000 Ada Generation GPUs into its cloud portfolio, setting a new benchmark for media processing efficiency. This integration is anticipated to deliver a staggering 25x increase in frames per second compared to traditional CPU methods, thereby enhancing productivity for media and entertainment firms.
Beyond media applications, the versatile NVIDIA GPUs also promise to improve performance across various industries, including AI, machine learning, scientific computing, and gaming. This collaboration not only underscores the technological prowess of both companies but also heralds a new era of efficiency and agility for businesses operating in the media and entertainment landscape. This, in turn, is likely to have resulted in incremental revenues in the quarter.
For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $976 million, indicating year-over-year growth from $932 million. The consensus estimate for adjusted earnings per share stands at $1.54, indicating growth from $1.41 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 $1.54. You can uncover the best stocks to buy or sell before they’re 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 currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Fastly Inc. (FSLY - Free Report) is set to release quarterly numbers on Aug 7. It has an Earnings ESP of +28.57% and carries a Zacks Rank #2.
SolarEdge Technologies (SEDG - Free Report) has an Earnings ESP of +5.13% and carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify Inc. (SHOP - Free Report) is set to release quarterly numbers on Aug 7. It has an Earnings ESP of +7.78% and sports a Zacks Rank #1.