Earnings Preview: Akamai Technologies

Akamai Technologies (AKAM) is expected to report Q2 earnings after marekt close Wednesday, July 30, with a conference call scheduled for 4:30 pm ET.

Guidance

The consensus estimate is 41c for EPS and $196.72M for revenue, according to First Call. Management's guidance calls for $194M to $199M in revenue and EPS of 41c to 42c.

Analyst Views

Canaccord Adams projecting 41c on $195M in revenue, and ARPU of $23,600 up from $23,200 in the March quarter. The firm expects Akamai to provide Q3 guidance and to update full-year guidance, which Akamai provided last quarter of $800M to $825M in revenue and EPS of $1.68 to $1.71. American Technology expects strong results with higher than expected gross margins. AmTech believes the company will provide in-line guidance. PacCrest believes the fundamentals remain solid for Akamai and expects Q2 revenue, EPS and subscriber metrics to be solid. The firm sees both the near and long-term outlooks as strong with relatively stable pricing.

Canaccord believes that top customer Apple (AAPL) will continue its long-term CDN relationship with Akamai. Also, it expects Akamai to provide Q3 guidance and to update full-year guidance, which Akamai provided last quarter of $800M to $825M in revenue and EPS of $1.68 to $1.71.

Key issues for the conference call: Forward guidance; commentary on the Apple relationship; a brief discussion with litigation competitor Limelight Networks (LLNW); the application acceleration progress should also be a topic of conversation, in conjunction with an update on the Netli purchase, as well; and commentary on renewed takeover chatter that resurfaced a few times during Q1.