Market Overview

Preview: Akamai Technologies's Earnings

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Akamai Technologies (NASDAQ: AKAM) announces its next round of earnings this Tuesday, October 27. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Akamai Technologies reporting earnings of $1.23 per share on sales of $775.18 million. Akamai Technologies reported a per-share profit of $1.1 when it published results during the same quarter last year. Sales in that period totaled $709.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 11.82% increase in the company's EPS figure. Sales would be up 9.19% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.21 1.16 1.13 1
EPS Actual 1.38 1.20 1.23 1.1
Revenue Estimate 767.39 M 749.76 M 749.28 M 701.27 M
Revenue Actual 794.72 M 764.30 M 772.12 M 709.91 M

Stock Performance

Over the last 52-week period, shares are up 22.27%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Akamai Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings Tech