S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) will unveil its latest earnings on Wednesday, July 27, 2011. Akamai Technologies, Inc. provides a distributed computing platform for accelerating and improving delivery of content and applications over the Internet. The company also offers solutions that enhance tools that people use for business transactions. .
Akamai Technologies, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 27 cents per share, a rise of 17.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate was unchanged, but has since dropped during the last month. For the year, analysts are projecting profit of $1.21 per share, a rise of 19.8% from last year.
Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 29 cents per share, and the previous quarter, it had profit of 30 cents.
Wall St. Revenue Expectations: On average, analysts predict $278 million in revenue this quarter, a rise of 13.3% from the year ago quarter. Analysts are forecasting total revenue of $1.17 billion for the year, a rise of 14.7% from last year’s revenue of $1.02 billion.
Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.3%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.8% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 23.8% while it rose 31% in the fourth quarter of the last fiscal year and 21.3% in the third quarter of the last fiscal year.
The company’s gross margin shrank by 4.2 percentage points in the in the first quarter. Revenue rose 15% while cost of sales rose 32% to $89.1 million from a year earlier.
Competitors to Watch: Limelight Networks, Inc. (NASDAQ:LLNW), Intl. Business Machines Corp. (NYSE:IBM), InterNAP Network Services (NASDAQ:INAP), Rackspace Hosting, Inc. (NYSE:RAX), SAVVIS, Inc. (NASDAQ:SVVS), Equinix, Inc. (NASDAQ:EQIX), Level three Communications, Inc. (NASDAQ:LVLT), Yahoo! Inc. (NASDAQ:YHOO), Onstream Media Corp (NASDAQ:ONSM), and Google Inc. (NASDAQ:GOOG).
Stock Price Performance: During April 26, 2011 to July 26, 2011, the stock price had fallen $9.53 (-24%) from $40.36 to $30.83. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 7.7% (+$2.24) over that span. It saw one of its worst periods between February 15, 2011 and March 1, 2011 when shares fell for 10-straight days, falling 13% (-$5.59) over that span. Shares are down $16.23 (-34.5%) year to date.
(Source: Xignite Financials)