Overview

* Akamai ( AKAM ) Q2 revenue rises 7% yr/yr to $1.043 bln, beating analyst expectations

* Non-GAAP EPS for Q2 up 9% yr/yr, surpassing analyst estimates, per LSEG data

* Cloud Infrastructure Services revenue grows 30% yr/yr, driven by security and cloud investments

Outlook

* Akamai ( AKAM ) expects Q3 revenue between $1.035 bln and $1.050 bln

* Akamai ( AKAM ) forecasts full-year revenue between $4.135 bln and $4.205 bln

* Company anticipates Q3 non-GAAP EPS of $1.62 to $1.66

* Akamai ( AKAM ) sees full-year non-GAAP EPS of $6.60 to $6.80

Result Drivers

* SECURITY REVENUE - Security revenue increased 11% yr/yr to $552 mln, driven by investments in security solutions

* CLOUD INFRASTRUCTURE - Cloud Infrastructure Services revenue rose 30% yr/yr to $71 mln, attributed to investments in cloud computing

* DELIVERY DECLINE - Delivery revenue declined 3% yr/yr to $320 mln, reflecting challenges in that segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.04 $1.02

Revenue bln bln (19

Analysts

)

Q2 Beat $1.73 $1.55

Adjusted (18

EPS Analysts

)

Q2 EPS $0.71

Q2 Beat $251 mln $232 mln

Adjusted (18

Net Analysts

Income )

Q2 Net $103.62

Income mln

Q2 Beat $444 mln $422.10

Adjusted mln (18

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Akamai Technologies Inc ( AKAM ) is $100.00, about 25.5% above its August 6 closing price of $74.48

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)