Akamai Technologies Third Quarter 2024 Earnings: EPS Misses Expectations

Akamai Technologies (NASDAQ:AKAM) Third Quarter 2024 Results

Key Financial Results

• Revenue: US$1.00b (up 4.1% from 3Q 2023).
• Net income: US$57.9m (down 64% from 3Q 2023).
• Profit margin: 5.8% (down from 17% in 3Q 2023). The decrease in margin was driven by higher expenses.
• EPS: US$0.38 (down from US$1.06 in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Akamai Technologies EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 60%.

Looking ahead, revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the IT industry in the US.

Performance of the American IT industry.

The company's shares are down 11% from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Akamai Technologies' balance sheet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.