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Fastly (FSLY) to Report Q2 Earnings: What's in the Cards?
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Fastly (FSLY - Free Report) is set to release second-quarter 2020 results on Aug 5.
For the quarter, the company expects to report between loss of 2 cents per share and break even. The Zacks Consensus Estimate is currently pegged at a loss of 1 cent per share, which has widened by a penny over the past 30 days. The company had reported a loss of 16 cents per share in the year-ago quarter.
Moreover, the company expects revenues between $70 million and $72 million. The consensus mark for the top line is currently pegged at $71.7 million, implying 55.2% growth from the figure reported in the year-ago quarter.
Markedly, Fastly’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average being 20.8%.
Let’s see how things shaped up prior to this announcement.
Factors to Watch
Fastly’s second-quarter results are expected to have benefited from solid growth in Internet traffic due to coronavirus-led lockdowns and shelter-in-place guidelines, much similar to Akamai (AKAM - Free Report) , its closest peer.
Markedly, Akamai’s top line grew 12.7% year over year (up 14% after adjusting for forex) to $794.7 million, driven by high traffic levels as more enterprises moved their operations online due to the coronavirus outbreak. Peak traffic on the Akamai platform exceeded 100 terabits per second on a daily basis in the second quarter.
Fastly is also expected to have benefited from this trend. Increased level of media consumption and e-commerce activity is expected to have spurred volumes.
Moreover, growing demand for edge computing is anticipated to have provided a boost to the company’s top-line growth.
Notably, dollar-based Net Expansion Rate and Net Retention Rate were 133% and 130%, respectively, in the last-reported quarter. The momentum in customer addition and retention is expected to have continued in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Fastly has an Earnings ESP of +27.27% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a couple of companies besides Fastly worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Alteryx has an Earnings ESP of +16.92% and a Zacks Rank #3.
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Fastly (FSLY) to Report Q2 Earnings: What's in the Cards?
Fastly (FSLY - Free Report) is set to release second-quarter 2020 results on Aug 5.
For the quarter, the company expects to report between loss of 2 cents per share and break even. The Zacks Consensus Estimate is currently pegged at a loss of 1 cent per share, which has widened by a penny over the past 30 days. The company had reported a loss of 16 cents per share in the year-ago quarter.
Moreover, the company expects revenues between $70 million and $72 million. The consensus mark for the top line is currently pegged at $71.7 million, implying 55.2% growth from the figure reported in the year-ago quarter.
Markedly, Fastly’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average being 20.8%.
Fastly, Inc. Price and EPS Surprise
Fastly, Inc. price-eps-surprise | Fastly, Inc. Quote
Let’s see how things shaped up prior to this announcement.
Factors to Watch
Fastly’s second-quarter results are expected to have benefited from solid growth in Internet traffic due to coronavirus-led lockdowns and shelter-in-place guidelines, much similar to Akamai (AKAM - Free Report) , its closest peer.
Markedly, Akamai’s top line grew 12.7% year over year (up 14% after adjusting for forex) to $794.7 million, driven by high traffic levels as more enterprises moved their operations online due to the coronavirus outbreak. Peak traffic on the Akamai platform exceeded 100 terabits per second on a daily basis in the second quarter.
Fastly is also expected to have benefited from this trend. Increased level of media consumption and e-commerce activity is expected to have spurred volumes.
Moreover, growing demand for edge computing is anticipated to have provided a boost to the company’s top-line growth.
Notably, dollar-based Net Expansion Rate and Net Retention Rate were 133% and 130%, respectively, in the last-reported quarter. The momentum in customer addition and retention is expected to have continued in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Fastly has an Earnings ESP of +27.27% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a couple of companies besides Fastly worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
AMETEK (AME - Free Report) has an Earnings ESP of +3.96% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alteryx has an Earnings ESP of +16.92% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>