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Will Modest Top-Line Growth Buoy Akamai (AKAM) Q2 Earnings?

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Akamai Technologies, Inc. (AKAM - Free Report) is scheduled to report second-quarter 2022 results on Aug 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of a negative 2.1%. It pulled off a trailing four-quarter earnings surprise of 2.3%, on average.

The Cambridge, MA-based company is expected to have recorded year-over-year higher revenues, driven by growth in its security business. Growing demand for cloud infrastructure solutions, mobile products and online video amid high data traffic is favoring its prospects.

During the quarter, Akamai unveiled a cybersecurity tool to mitigate cyber risks and block malicious files uploaded to web apps and APIs (Application Programming Interfaces), which are a set of definitions and protocols for building and integrating application software. This edge-based solution dubbed Malware Protection will detect and block malware at the edge and prevent it from reaching the targeted destination, thereby thwarting damage from spreading.

The company launched Audience Hijacking Protector to maximize revenue opportunities and minimize marketing fraud. Akamai also unveiled several new application security features designed to help organizations thwart cybersecurity threats during API interactions and at the edge. Such state-of-the-art products are likely to have aided its performance in the quarter.

The Zacks Consensus Estimate for revenues is pegged at $897 million, which indicates growth from the year-ago quarter’s reported figure of $853 million. The consensus estimate for adjusted earnings per share is pegged at $1.02, suggesting a decrease from $1.18 reported a year ago.

Earnings Whispers

Our proven model does not predict an earnings beat for Akamai in the second 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 -0.60%, with the former pegged at $1.30 and the latter at $1.31. 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 and EPS Surprise

Akamai Technologies, Inc. price-eps-surprise | Akamai Technologies, Inc. Quote

Zacks Rank: Akamai has a Zacks Rank #4 (Sell).

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 - Free Report) is set to release quarterly numbers on Aug 17. It has an Earnings ESP of +1.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Onto Innovation Inc. (ONTO - Free Report) is +0.26% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 9.

The Earnings ESP for Viasat, Inc. (VSAT - Free Report) is +8.16% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug 8.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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