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With a market cap of $16.2 billion, Akamai Technologies, Inc. (AKAM) is a powerhouse in the tech world. The firm delivers the backbone for faster, safer internet experiences. Known for its cloud computing, security, and content delivery services, Akamai helps keep the digital world running smoothly - whether it is ensuring seamless media streaming or fortifying applications against cyber threats.
With a global reach, the company’s solutions are integral to boosting web performance and safeguarding data in an increasingly connected world. Akamai Technologies is expected to release its fiscal 2024 Q3 earnings results on Thursday, Nov. 7.
Ahead of the event, analysts expect Akamai Technologies’ profit to be $1.10 per share, up 12.2% from $0.98 per share in the year-ago quarter. The company has met Wall Street’s EPS estimates in just one of the last four quarters while missing on three other occasions. Akamai’s profit of $1.06 per share for the last reported quarter matched the consensus estimates.
Analysts anticipate Akamai to report an EPS of $4.42 in fiscal 2024, down marginally from $4.44 in fiscal year 2023. However, its fiscal 2025 EPS is projected to surge 6.8% annually to $4.72.
AKAM has dipped 9.9% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Technology Select Sector SPDR Fund’s (XLK) 20% returns in 2024.
Akamai has struggled to keep pace with the broader market, as declining performance in its legacy CDN business and sluggish adoption of newer security and compute services weighed heavily on its stock. Plus, increased competition in cybersecurity and the challenges of shifting its business model only added to investor unease.
However, Akamai surprised the market on Aug. 8, with a 10.9% stock surge following stronger-than-projected Q2 earnings results. With $979.6 million in revenue in Q2, the company also issued a promising Q3 forecast, powered by growing demand for its cybersecurity services amid rising digital threats.
The current consensus opinion on AKAM is “Moderate Buy” overall. Out of 19 analysts covering the stock, 12 suggest a “Strong Buy,” one recommends a “Moderate Buy,” five advise a “Hold,” and the remaining one has a “Strong Sell.”
The mean price target of $116.94 suggests the stock has an upside potential of 9.6% from the current price levels.
On the date of publication, Sristi Jayaswal 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.
