Akamai Technologies, Inc. (AKAM) is scheduled to report its Q2 2012 results on July 25, 2012, after the bell. The Street expects EPS and revenue of $0.37 and $325.72 million, respectively.
In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, Akamai's latest news, and the news from its closest competitors.
Recent EPS -- Actual vs. Estimates
The company has met or beaten analysts' estimates in the last three quarters. In the most recent quarter it reported $0.41 EPS, beating analyst estimates of $0.38.
The consensus EPS estimate is $0.37 based on 21 analysts' estimates, up from $0.35 a year ago. Revenue estimates are $325.72 million, up from $276.99 million a year ago. The median target price by analysts for the stock is $36.00.
Average Recommendation: Overweight
- On June 27, 2012, Qualcomm and Akamai announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
- On April 25, 2012, Akamai announced that for second quarter of 2012, it expects revenue to be in the range of $322-$330 million and fully taxed normalized earnings per share (EPS) in the range of $0.36-$0.38. According to I/B/E/S Estimates, analysts are expecting the company to report revenue of $324 million and EPS of $0.37 for second quarter of 2012.
- On April 25, 2012, Akamai announced that President and CEO Paul Sagan plans to transition out of his role by the end of 2013. Sagan has committed to continue leading the company until his successor is named, and he intends to remain directly involved with Akamai thereafter to ensure a successful leadership transition.
- On April 17, 2012, Akamai announced that it has been selected by Fiat Group Automobiles as partner to improve the performance of both its corporate and brand sites and to optimize the navigation experience from desktop and mobile devices.
- On March 21, 2012, Akamai announced that Dolce & Gabbana has chosen Akamai's Dynamic Site Accelerator, part of the company's Aqua Web Solutions, to accelerate all versions of its website (dolcegabbana.com) as well as "Swide" (swide.com), its digital editorial hub available in English.
- On March 6, 2012, Akamai announced that it has completed its acquisition of Cotendo, Inc., a privately held company based in Sunnyvale, Calif., that offers an integrated suite of Web and mobile acceleration services.
- On Feb. 9, 2012, Akamai announced that for first quarter of 2012 it expects revenue to be in the range of $305-$313 million and fully taxed normalized earnings per share to be $0.36-$0.39. According to I/B/E/S Estimates, analysts on an average are expecting the company to report revenue of $306 million and EPS of $0.39 for first quarter of 2012.
- On Feb. 8, 2012, Akamai announced that it has acquired Blaze Software Inc., a provider of front-end optimization (FEO) technology, in a cash transaction.
- On Feb. 8, 2012, Akamai announced a planned transition in leadership within the company's finance organization. James Benson, Akamai's senior vice president of finance will succeed J. Donald Sherman as executive vice president and CFO effective March 1, 2012.
Equinix (EQIX), j2 Global (JCOM), Level 3 Communications (LVLT), and Rackspace Hosting (RAX) are competitors for Akamai, and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 for the last one-year period.
Click to enlarge image.
- On July 18, 2012, Level 3 Communications announced that ESPN Brazil will use Level 3 Vyvx broadcast solutions infrastructure and managed services to optimize transmissions and provide integrated services for TV stations that carry its broadcasts in Brazil.
- On June 27, 2012, Level 3 announced that TVRL GmbH & Co. KG, which operates the music TV service Putpat, has selected Level 3 to support the company's growing need for high storage and availability requirements for various delivery formats, while ensuring rigorous content security and workflow optimization.
- On June 26, 2012, Level 3 announced that it has been selected by ScaleMatrix, to provide secure, reliable connectivity between two of its primary data center facilities in San Diego, Calif., and Katy, Texas.
- On May 16, 2012, Equinix announced that it has entered into an agreement to acquire Ancotel GmbH, provider of carrier neutral colocation and interconnection services in Europe.
- On May 15, 2012, Level 3 announced a multiyear contract with European-based content provider Voxility. Under the terms of the agreement, Level 3 will provide more than 250 Gbps to Voxility's three data centers, located in North America and Europe, providing a substantial amount of capacity to support the company's continued global growth.
- On May 15, 2012, Equinix announced that IRESS, a financial services technology provider headquartered in Australia, has leveraged Platform Equinix to extend availability of its market data, access, trading and wealth solutions services throughout and beyond the Asia Pacific region.
- On May 9, 2012, Equinix, announced that Front Porch Digital, provider in content storage management solutions, has selected Equinix to house its new cloud solution platform known as LYNX.
- On May 3, 2012, J2 Global announced that for fiscal 2012, it is reaffirming its previously issued financial estimates and expects revenues between $345-$365 million and Non-GAAP net earnings per diluted share to be approximately the same as for 2011.
- On May 3, 2012, Level 3 reiterated fiscal 2012 guidance provided in the fourth-quarter 2011 call and expects 20% to 25% Adjusted EBITDA growth from the starting point of $1.216 billion of pro forma adjusted EBITDA for 2011.
- On May 1, 2012, Equinix, announced it has entered into a definitive agreement to acquire certain assets and operations of Hong Kong-based data center provider Asia Tone in an all cash transaction valued at $230.5 million.
- On April 25, 2012, Equinix announced that for second quarter of 2012, it expects revenue to be in the range of $466.0-$468.0 million and adjusted EBITDA to be between $212.0 and $214.0 million, which includes a $3.0 million increase in professional fees and $1.0 million of negative currency headwinds.
- On April 23, 2012, Level 3 announced that it has been selected by Collaborative Telecare Networks, a provider of network connectivity for the healthcare industry, to improve the efficiency, security, and reliability of the company's network capabilities.
- On April 18, 2012, Level 3 announced that it has been selected by Hexaglobe, a Paris-based media services provider, to enhance the delivery of reliable, high-quality video services to Hexaglobe's media and broadcast customers.
- On April 17, 2012, Level 3 announced that it has been selected as the exclusive broadcast services and CDN provider for the ITU World Triathlon Series.
- On April 12, 2012, Equinix announced plans to build a fifth International Business Exchange data center in Zurich (ZH5), and expand GV2, one of its Geneva-based data centers.
- On April 5, 2012, Equinix announced that Unitas Global, has selected Platform Equinix in Singapore and Sydney, Australia, to support its global business expansion plans.
- On March 26, 2012, Level 3 announced that it has been selected by FXCM, Inc., to provide multiple network services that increase the security, reliability, and performance of FXCM's online trading applications.
- On Feb. 21, 2012, Digital Realty Trust announced that it has entered a joint venture agreement with Equinix, a provider of global data center services, to develop a build-to-suit data center facility for Carpathia Hosting, a provider of managed hosting services for enterprises and federal agencies.
- On Feb. 20, 2012, Rackspace Hosting announced that it has been selected as a vendor to the government's GBP60million G-Cloud framework. Rackspace can supply Infrastructure-as-a-Service and higher level Platform-as-a-Service technologies to U.K. government departments.
- On Feb. 16, 2012, Rackspace Hosting announced that it has acquired SharePoint911, which is into SharePoint consulting, training, and "JumpStart" services within SharePoint.
- On Feb. 15, 2012, Equinix announced that for the first quarter of 2012, it expects revenues to be in the range of $443.0 to $446.0 million and adjusted EBITDA is expected to be between $200.0 and $205.0 million.
- On Feb. 14, 2012, J2 Global announced that the board of directors has approved the declaration of a quarterly cash dividend to its shareholders of $0.21 per common share, a 2.4% increase vs. last quarter's dividend.
- On Feb. 14, 2012, J2 Global announced that for fiscal 2012, it expects revenues of between $345 million and $365 million and non-GAAP net earnings per diluted share to be approximately the same as for fiscal 2011.
- On Feb. 8, 2012, Level 3 announced that for fiscal 2012, it expect to continue to grow the business, with Core Network Services revenue continuing to grow sequentially.
- On Jan. 30, 2012, Level 3 announced that hosting company Typhon has selected Level 3 to provide high-speed IP services connecting Typhon's international data center operations.
The stock has a market capitalization of $5.36 billion and is currently trading at $29.91, with a 52-week range of $18.25-$39.14. The stock's year-to-date performance has been -7.34%. It is currently trading below 20-, 50-, and 200-day SMAs.
Data sourced from Yahoo Finance, Google Finance, MarketWatch, Finviz, and Reuters.
Disclosure: I am long JCOM.