Earnings Preview: Akamai

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 |  About: Akamai Technologies, Inc. (AKAM)
by: Theflyonthewall

Akamai (NASDAQ:AKAM) is expected to report Q4 earnings after the market close on Wednesday, February 9, with a conference call scheduled for 4:30 pm ET.

Guidance

The consensus estimate is 38c for EPS and $283.08M for revenue, according to First Call. Management guidance for Q4 calls for pro-forma EPS of 35c-38c on $272M-$285M in revenue.

Analyst Views

Think Equity expects a solid Q4 report and 2011 guidance. The firm is modeling Q4 pro-forma EPS of 44c on$284.4 in revenue. Other Q4 metrics: Think Equity is modeling media revenues of $121.1M, eCommerce segment revenues of $95.2M, high tech revenues of $53.0M and public revenues of $15.1M. Looking forward, Think Equity believes consensus estimates of $1.62 on $1.20B in revenue may prove conservative, especially given that Akamai’s 2011 analyst day guidance calls for a 20% 10-year CAGR. Think Equity would not be surprised to see Akamai provide guidance in the low-to-mid 20’s for 2011. The firm expects a neutral to positive reaction for AKAM shares on Q4 results and guidance. Think Equity believes Akamai shares are fairly valued at current levels.