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.
Factors Setting the Tone for Akamai's (AKAM) Q1 Earnings
Read MoreHide Full Article
Akamai Technologies (AKAM - Free Report) is set to release first-quarter 2019 results on Apr 30.
Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 9.5%.
In the last reported quarter, Akamai benefited from higher revenues, favorable impact of the cost reduction initiatives and lower tax rate. The top line benefited from robust performance of the cloud security business, growth in Media and Carrier Division, strong seasonal traffic, and operational efficiency.
For first-quarter 2019, revenues are anticipated between $690 million and $704 million. Non-GAAP earnings are expected between $1 and $1.05 per share.
The Zacks Consensus Estimate for revenues currently stands at $698.4 million, indicating growth of 4.4% from the year-ago quarter’s reported figure. Moreover, the consensus mark for earnings has remained steady at $1.02 over the past 30 days, implying growth of 29.1% from the figure reported in the year-ago period.
Let’s see how things are shaping up for this announcement.
Factors to Watch
Solid demand for Kona Site Defender, Nominum services, Bot Manager and Prolexic Solutions are anticipated to drive Cloud Security Solutions revenues in the to-be-reported quarter.
Notably, Akamai exited the fourth quarter at a run rate of around $750 million for the security business.
Synergies from the Nominum acquisition (completed in Nov, 2017) are enabling the company to enhance the Enterprise Threat Protector solution, and expand presence among carrier and enterprise customers. Growing influence of the company’s security solutions among media customers is also noteworthy.
Additionally, the company’s solutions are winning awards and industry-wide recognition is improving its brand reputation. Kona Site Defender secured “Best Web Application Solution” award at SC Media's 23rd annual SC Awards ceremony, held at RSA Conference in San Francisco during the quarter.
These aforesaid factors are helping Akamai win new customers. Moreover, expansion of the security solutions portfolio is anticipated to not only lower dependence on media delivery solutions but also offset loss of large customers in the CDN space.
Further, completion of the Janrain acquisition in the last reported quarter strengthened Akamai’s security solutions portfolio. The integration of Janrain’s Identity Cloud with Intelligent Edge Platform now enables Akamai to provide enhanced secure services to its CIAM customers, in turn bolstering engagement. This is expected to drive top-line growth in the first quarter.
Additionally, robust over-the-top (OTT) content viewing, increasing adoption of mobile data/apps and growing mobile data traffic bode well for Akamai.
Strong growth in demand for High Definition video over the Internet is driving bandwidth requirements, thereby accelerating demand for the company’s solutions and driving revenues. However, increasing total bandwidth costs are a headwind for Akamai.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Akamai has a Zacks Rank #3 and an Earnings ESP of +0.57%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.
Intuit (INTU - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2.
Sapiens International (SPNS - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Factors Setting the Tone for Akamai's (AKAM) Q1 Earnings
Akamai Technologies (AKAM - Free Report) is set to release first-quarter 2019 results on Apr 30.
Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 9.5%.
In the last reported quarter, Akamai benefited from higher revenues, favorable impact of the cost reduction initiatives and lower tax rate. The top line benefited from robust performance of the cloud security business, growth in Media and Carrier Division, strong seasonal traffic, and operational efficiency.
For first-quarter 2019, revenues are anticipated between $690 million and $704 million. Non-GAAP earnings are expected between $1 and $1.05 per share.
Akamai Technologies, Inc. Price and EPS Surprise
Akamai Technologies, Inc. Price and EPS Surprise | Akamai Technologies, Inc. Quote
The Zacks Consensus Estimate for revenues currently stands at $698.4 million, indicating growth of 4.4% from the year-ago quarter’s reported figure. Moreover, the consensus mark for earnings has remained steady at $1.02 over the past 30 days, implying growth of 29.1% from the figure reported in the year-ago period.
Let’s see how things are shaping up for this announcement.
Factors to Watch
Solid demand for Kona Site Defender, Nominum services, Bot Manager and Prolexic Solutions are anticipated to drive Cloud Security Solutions revenues in the to-be-reported quarter.
Notably, Akamai exited the fourth quarter at a run rate of around $750 million for the security business.
Synergies from the Nominum acquisition (completed in Nov, 2017) are enabling the company to enhance the Enterprise Threat Protector solution, and expand presence among carrier and enterprise customers. Growing influence of the company’s security solutions among media customers is also noteworthy.
Additionally, the company’s solutions are winning awards and industry-wide recognition is improving its brand reputation. Kona Site Defender secured “Best Web Application Solution” award at SC Media's 23rd annual SC Awards ceremony, held at RSA Conference in San Francisco during the quarter.
These aforesaid factors are helping Akamai win new customers. Moreover, expansion of the security solutions portfolio is anticipated to not only lower dependence on media delivery solutions but also offset loss of large customers in the CDN space.
Further, completion of the Janrain acquisition in the last reported quarter strengthened Akamai’s security solutions portfolio. The integration of Janrain’s Identity Cloud with Intelligent Edge Platform now enables Akamai to provide enhanced secure services to its CIAM customers, in turn bolstering engagement. This is expected to drive top-line growth in the first quarter.
Additionally, robust over-the-top (OTT) content viewing, increasing adoption of mobile data/apps and growing mobile data traffic bode well for Akamai.
Strong growth in demand for High Definition video over the Internet is driving bandwidth requirements, thereby accelerating demand for the company’s solutions and driving revenues. However, increasing total bandwidth costs are a headwind for Akamai.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Akamai has a Zacks Rank #3 and an Earnings ESP of +0.57%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.
Synopsis (SNPS - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuit (INTU - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2.
Sapiens International (SPNS - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>