Akamai Technologies Earnings Estimate

AKAM
 Stock
  

USD 96.85  0.90  0.94%   

Many public companies, such as Akamai Technologies, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm. By analyzing Akamai Technologies' earnings estimates, investors can diagnose different trends across Akamai Technologies' analyst sentiment over time as well as compare current estimates against different timeframes.
Akamai Technologies is projected to generate 4.57 in earnings per share on the 31st of December 2021. Akamai Technologies earnings estimates module stress-tests analyst consensus about projected Akamai Technologies EPS (Earning Per Share) to derive its highest and lowest estimates based on its historical volatility. Please continue to Trending Equities.
  
The value of Gross Profit is estimated to pull down to about 2 B. The value of Profit Margin is estimated to pull down to 0.16

Akamai Technologies Earnings Estimation Breakdown

Calculation of earning per share of Akamai Technologies is based on official Zacks consensus of 6 analysts regarding Akamai Technologies future annual earnings. Given the historical accuracy of 87.82%, the future earnings per share of Akamai Technologies is estimated to be 4.57 with the lowest and highest values of 4.54 and 4.61, respectively. Please note that this consensus of annual earnings estimates for Akamai Technologies is an estimate of EPS before non-recurring items and including employee stock options expenses
  Current EPS 3.64
4.54
Lowest
Expected EPS 4.57
4.61
Highest

Akamai Technologies Earnings Projection Consensus

Suppose the current estimates of Akamai Technologies' value are higher than the current market price of the Akamai Technologies stock. In this case, investors may conclude that Akamai Technologies is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Akamai Technologies' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyCurrent EPSEPS Estimate for 31st of December 2021

6

87.82%

3.64

4.57

Akamai Technologies Earnings History

Earnings estimate consensus by Akamai Technologies analysts from Wall Street is used by the market to judge Akamai Technologies' stock performance. The investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Akamai Technologies' upcoming profit reports and earnings-per-share forecasts but also compare them to our different valuation methods.

Akamai Technologies Quarterly Earnings Before Interest Taxes and Depreciation Amortization EBITDA

324.13 Million

Akamai Technologies Accumulated Retained Earnings Deficit are relatively stable at the moment as compared to the past year. The company's current value of Accumulated Retained Earnings Deficit is estimated at 1.36 Billion. Price to Earnings Ratio is expected to hike to 34.66 this year, although the value of Earning Before Interest and Taxes EBIT will most likely fall to nearly 690.9 M. The value of Weighted Average Shares is estimated to pull down to about 158.3 M. The value of Weighted Average Shares Diluted is expected to pull down to about 161 M.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Akamai Technologies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Akamai Technologies in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
94.3596.1397.91
Details
Intrinsic
Valuation
LowReal ValueHigh
86.55115.01116.79
Details
Naive
Forecast
LowNext ValueHigh
94.3096.0897.87
Details
14 Analysts
Consensus
LowTarget PriceHigh
120.00134.54183.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Akamai Technologies. Your research has to be compared to or analyzed against Akamai Technologies' peers to derive any actionable benefits. When done correctly, Akamai Technologies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Akamai Technologies.
Note that many institutional investors and large investment bankers can move markets due to the volume of Akamai assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Akamai Technologies. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Akamai stock price in the short term.

Akamai Technologies Earnings per Share Projection vs Actual

Actual Earning per Share of Akamai Technologies refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Akamai Technologies predict the company's earnings will be in the future. The higher the earnings per share of Akamai Technologies, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Akamai Technologies Estimated Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Akamai Technologies, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Akamai Technologies should always be considered in relation to other companies to make a more educated investment decision.

About Akamai Technologies Earnings Estimate

The earnings estimate module is a useful tool to check what professional financial analysts are assuming about the future of Akamai Technologies earnings. We show available consensus EPS estimates for the upcoming years and quarters. Investors can also examine how these consensus opinions have evolved historically. We show current Akamai Technologies estimates, future projections, as well as estimates 1, 2, and three years ago. Investors can search for a specific entity to conduct investment planning and build diversified portfolios. Please note, earnings estimates provided by Macroaxis are the average expectations of expert analysts that we track. If a given stock such as Akamai Technologies fails to match professional earnings estimates, it usually performs purely. Wall Street refers to that as a 'negative surprise.' If a company 'beats' future estimates, it's usually called an 'upside surprise.'
Please read more on our stock advisor page.
Last ReportedProjected for 2022
Accumulated Retained Earnings Deficit1.3 B1.4 B
Earning Before Interest and Taxes EBIT786.5 M690.9 M
Earnings per Basic Share 4.01  3.32 
Earnings per Diluted Share 3.93  3.25 
Price to Earnings Ratio 29.19  34.66 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.3 B1.2 B
Earnings before Tax714.2 M636.8 M
Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts. Akamai Technologies operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 9180 people.

Akamai Technologies Investors Sentiment

The influence of Akamai Technologies' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Akamai. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Akamai Technologies' public news can be used to forecast risks associated with investment in Akamai. The trend in average sentiment can be used to explain how an investor holding Akamai can time the market purely based on public headlines and social activities around Akamai Technologies. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Akamai Technologies' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Akamai Technologies' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Akamai Technologies' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Akamai Technologies.

Akamai Technologies Implied Volatility

    
  33.6  
Akamai Technologies' implied volatility exposes the market's sentiment of Akamai Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Akamai Technologies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Akamai Technologies stock will not fluctuate a lot when Akamai Technologies' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Akamai Technologies in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Akamai Technologies' short interest history, or implied volatility extrapolated from Akamai Technologies options trading.
Please continue to Trending Equities. Note that the Akamai Technologies information on this page should be used as a complementary analysis to other Akamai Technologies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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Is Akamai Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.21
Market Capitalization
15.3 B
Quarterly Revenue Growth YOY
0.059
Return On Assets
0.0616
Return On Equity
0.13
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine Akamai Technologies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.