Akamai is slated to report its Q3 FY’23 results on November 7. We estimate that Akamai’s revenue will come in at about $944 million for the quarter, slightly ahead of consensus estimates and about 8% higher compared to last year. We estimate that earnings will stand at close to $1.50 per share, in line with the consensus. So what are some of the trends that are likely to drive Akamai’s results? See our dashboard analysis on Akamai Earnings Preview for more details on how Akamai’s revenues and earnings are likely to trend for the quarter.
Amidst the current financial backdrop, AKAM stock has seen little change, moving slightly from levels of $105 in early January 2021 to around $100 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period. Overall, the performance of AKAM stock with respect to the index has been lackluster. Returns for the stock were 11% in 2021, -28% in 2022, and 21% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 8% in 2023 – indicating that AKAM underperformed the S&P in 2021 and 2022. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could AKAM face a similar situation as it did in 2021 and 2022 and underperform the S&P over the next 12 months – or will it see a strong recovery?
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.