Yahoo Finance Can Top-line Growth Improve Akamai (AKAM) Q1 Earnings?
Akamai Technologies, Inc. AKAM is scheduled to release first-quarter 2023 results on May 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 7.87%. It pulled off a trailing four-quarter earnings surprise of 2.81%, on average.
The Cambridge, MA-based company is likely to witness a top-line expansion year over year, owing to rising demand of cloud computing services and holistic growth policy. However, stiff competition and near-term uncertainty remain concerns.
Factors at Play
During the first quarter, Akamai unveiled a set of new tools and services to boost cybersecurity. The newly-introduced Hunt Security Services integrates Akamai Guardicore Segmentation with its extensive Internet traffic and unique dataset. The services will help clients eliminate threats, patch vulnerabilities and enhance IT security. The product utilizes big data analysis to examine massive data and identifies suspicious activities. Clients also get advice on how to further strengthen their IT infrastructure from Hunt experts.
Akamai Agentless Segmentation also improve the security of loT and OT devices. It’s various features automatically detect any new device connected and ensure that appropriate security procedures are enforced. The solution provides greater visualization of Enterprise assets and isolates the suspicious devices. These initiatives are likely to have improved the company’s top-line performance.
In the quarter under review, Akamai announced the acquisition of the U.K based cloud storage technology enterprise Ondat. Cloud computing relies on storage and the technology provided by Ondat will broaden Akamai’s storage capabilities. This will improve Akamai’s cloud services by integrating core and distributed computing sites with a large-scale edge network. The acquisition is likely to have strengthened Akamai’s cloud computing portfolio, accelerated commercial expansion and supported the top line during the quarter.
In the first quarter, the company introduced Akamai Connected Cloud and various cloud computing services. It is a massively-scaled edge network, which provides enhanced security, greater scalability and intends to bring basic cloud computing capabilities in remote locations. With the rise of cloud environments, Akamai’s solution is set to play a vital role in helping businesses enhance their IT infrastructure, minimize risks and boost overall performance. These developments are likely to have improved the company’s first-quarter earnings 2023 prospects.
For the first quarter of 2023, the Zacks Consensus Estimate for revenues is pegged at $910 million, indicating a year-over-year growth from $904 million. The consensus estimate for adjusted earnings per share is pegged at $1.32, suggesting a decrease from $1.39 reported a year ago.
Earnings Whispers
Our proven model does not predict an earnings beat for Akamai in the first quarter. 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 -0.08%. 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 has a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Keysight Technologies, Inc. KEYS is set to release quarterly numbers on May 16. It has an Earnings ESP of +0.09% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Jabil, Inc. JBL is +3.38% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jun 15.
The Earnings ESP for Splunk Inc. SPLK is +12.16% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
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Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
