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Akamai Technologies, Inc. (NASDAQ:AKAM) posted upbeat earnings for its first quarter, but issued weak guidance.
Akamai Technologies posted quarterly adjusted earnings of $1.64 per share, beating market estimates of $1.61 per share. The company's sales came in at $987.000 million, versus expectations of $989.261 million, according to data from Benzinga Pro.
“We are pleased with our continuing execution on our long-term strategy to drive revenue growth in our security and compute solutions,” said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “Both solutions had a strong start to 2024 and collectively grew more than 20% year-over-year, representing almost two-thirds of total revenue. We’re particularly excited about our planned acquisition of Noname Security, which will enhance Akamai’s existing API Security solution and accelerate our ability to meet growing customer demand.”
Akamai said it sees second-quarter adjusted earnings of $1.51 to $1.56 per share, versus estimates of $1.63 per share. The company expects revenue of $967 million to $986 million, versus expectations of $1 billion.
The company said it sees FY24 adjusted EPS of $6.20 to $6.40 compared to market estimates of $6.73. It expects revenue of $3.95 billion to $4.02 billion, versus expectations of $4.08 billion, according to data from Benzinga Pro.
Akamai Technologies shares rose 0.3% to close at $102.46 on Thursday.
These analysts made changes to their price targets on Akamai Technologies following earnings announcement.
- Baird cut the price target on Akamai Technologies from $135 to $120. Baird analyst William Power maintained an Outperform rating.
- B of A Securities slashed the price target on Akamai Technologies from $145 to $125. B of A Securities analyst Madeline Brooks maintained a Buy rating.
- Susquehanna lowered the price target on Akamai Technologies from $150 to $135. Susquehanna analyst Aaron Samuels maintained a Positive rating.
Read More: Top 2 Materials Stocks That Could Blast Off This Quarter
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