Akamai Technologies (AKAM) is expected to report Q2 earnings after the market close on Wednesday, July 28, with a conference call scheduled for 4:30 pm ET.
The consensus estimate is 34c for EPS and $243.27M for revenue, according to First Call. Wedbush believes Q2 revenue and EPS could exceed expectations. The firms Q2 revenue estimate is $245M, which is slightly above consensus.
Wedbush's fully taxed pro foma EPS estimate is 34c in-line with consensus; however, the firm believes that upside to their fully taxed pro foma EPS and revenue estimate is likely. Management guided Q2 fully taxed pro forma EPS to 32c-34c on revenue of $236M-$246M. In the Media and Entertainment vertical, traffic growth is expected to offset price declines, which could drive upside to Wedbush's estimates. Based on Wedbush's June page view analysis, Q2 page views increased approximately 6% quarter-over-quarter, which is above their QoQ Commerce revenue growth estimate of approximately 4%. Wedbush believes this could translate into about $1M of upside. Wedbush's checks indicate solid download traffic growth driven by the strong PC cycle and the launch of Microsoft’s (MSFT) Windows 7 and Adobe’s (ADBE) Creative Suite 5 and Flash Player 10.1. Looking forward: Wedbush estimates Q3 EPS of 34c on $250M in revenue, while consensus is forecasting 34c on $247.10M in revenue. Wedbush has an Outperform rating with at $51 price target on Akamai shares, believing that fundamentals are strong and improving, warranting a premium valuation.