Akamai Technologies (AKAM) Q2 Earnings: What's In Store? (Revised)
Zacks Investment Research | Jul 26, 2016 06:16AM ET
Akamai Technologies, Inc. (NASDAQ:AKAM) is set to report second-quarter 2016 results on Jul 26, after market close. The company reported a positive earnings surprise of 1.96% in the last quarter. It has also delivered an average positive earnings surprise of 4.05% over the trailing four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Akamai is likely to benefit from the rising demand for cloud infrastructure solutions, security, mobile products and online video. This apart, the other positive factors for the company include increasing mobile data traffic and demand for wireless broadband, and growth in performance-driven advertising. Akamai is also likely to benefit from its strong foothold in the web applications domain. Additionally, the company has been re-evaluating its growth strategy, which is also a positive.
However, the setbacks in the company’s media delivery business can pose some concerns. In addition, the over-the-top (OTT) video market has been sluggish of late. Even though consumers continue to shift from traditional videos to OTT, the rate of conversion is lower than expected.
For the second quarter of 2016, Akamai expects revenues in the range of $566 million to $582 million. Non-GAAP earnings per share are projected in the range of 62 cents to 65 cents.
Earnings Whispers
Our proven model does not conclusively show that Akamai is likely to beat earnings this quarter. This is because a stock needs to have both a positive Original post
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