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Does The Street Have Akamai Technologies Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 1:48PM

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Checking expectations

Akamai Technologies (Nasdaq: AKAM) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Akamai Technologies's revenues will increase 12.0% and EPS will expand 14.6%.

The average estimate for revenue is $357.6 million. On the bottom line, the average EPS estimate is $0.47.

Revenue details
Last quarter, Akamai Technologies booked revenue of $377.9 million. GAAP reported sales were 17% higher than the prior-year quarter's $323.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.54. GAAP EPS of $0.37 for Q4 were 12% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 74.1%, 580 basis points better than the prior-year quarter. Operating margin was 29.4%, 330 basis points better than the prior-year quarter. Net margin was 18.1%, 50 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.51 billion. The average EPS estimate is $1.91.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,036 members out of 3,187 rating the stock outperform, and 151 members rating it underperform. Among 651 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 623 give Akamai Technologies a green thumbs-up, and 28 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akamai Technologies is outperform, with an average price target of $42.71.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Akamai Technologies Stock Quote
Akamai Technologies
$89.66 (-0.17%) $0.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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