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Akamai Technologies, Inc. (AKAM), headquartered in Cambridge, Massachusetts, is a global provider of content delivery networks and cloud infrastructure services. The company's market cap stands at $14.5 billion, and its business is organized into two main divisions: Media and Carrier and Web Division. AKAM is scheduled to release its fiscal 2024 Q2 earnings results after the market closes on Thursday, Aug. 8.
Ahead of the event, analysts expect Akamai Technologies to report a profit of $1.06 per share, up 5% from $1.01 per share in the year-ago quarter. However, the company has failed to exceed Wall Street’s EPS estimates in each of the last four quarters. Akamai Technologies’ EPS of $1.14 for the last reported quarter could not beat the consensus estimate by 2.6%.
Over the longer term, analysts expect Akamai Technologies to report an EPS of $4.38 in fiscal 2024, down 1.4% from $4.44 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 6.2% annually to $4.65.
AKAM stock has soared 2.6% over the past 52 weeks, trailing behind the broader S&P 500 Index's ($SPX) 19.2% gains and the Technology Select Sector SPDR ETF’s (XLK) 22.4% returns during the same period.
Shares of Akamai Technologies dropped 11% in the following trading session after its Q1 earnings release on May 9. Despite exceeding Wall Street's EPS expectations, the company's full-year revenue guidance fell short of analysts' forecasts, leading to the decline in stock price.
On a positive note, its Security and Compute segments revenue represented 64% of total revenue in the first quarter and grew 21% and 25% year-over-year, respectively, driven by robust demand. Also, AKAM’s Board approved a new three-year, $2 billion share repurchase program, which aims to offset dilution from employee equity compensation and provide flexibility to return capital to shareholders while maintaining the ability to pursue strategic opportunities.
The consensus opinion on Akamai Technologies stock is a “Moderate Buy.” Out of 20 analysts covering the stock, 11 suggest a “Strong Buy,” one says a “Moderate Buy,” seven advise a “Hold,” and the remaining one analyst recommends a “Strong Sell.” Over the past month, a new “Strong Buy” recommendation has been added.
The average price target for Akamai Technologies is $112.94, indicating a potential upside of 18.6% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
