Akamai (AKAM 75.32, -2.33, -3.00%) updated guidance at its ongoing Analyst Day
Excluding the impact of foreign exchange rates, Akamai guided second quarter EPS and revenue at the midpoint of its prior guidance. However, strength in the USD resulted in a $3 mln headwind to revenue and $0.01 to EPS. As a result, the company lowered second quarter guidance to EPS of $0.79-0.81 on revenue of $658-663 mln, down from $0.79-0.83 from $658-670 mln.
As measured in constant currency, full year fiscal 2018 revenue and non-GAAP EPS are anticipated to be at the high end or above the previous guidance ranges of $2,690 mln to $2,720 mln and $3.15 to $3.25, respectively. Factoring in expected currency-related headwinds of $17 mln and $0.05, respectively, for the full year, the Company now anticipates its full year 2018 revenue range to be $2.675-2.705 bln and non-GAAP EPS to be between $3.20-3.30. The prior guidance called for revenue of $2.69-2.72 bln and EPS of $3.15-3.25. The increase to the net income per share guidance is due to expected improvement in the Company's operating margins.
Just over two-thirds of Akamai's revenue came from overseas last year.
Akamai is the world's largest and most trusted cloud delivery platform, delivering 95 exabytes of data a year across blns of devices. Akamai is expected to grow EPS ~24% on 8% sales growth this year. The company's cloud security solutions unit is growing faster than the total company near +30%.
The stock trades at 23x earnings and 5x sales.
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