Akamai Technologies (AKAM) Sees Headwinds from Stronger Dollar

In connection with its Analyst Day being held today, Akamai Technologies, Inc. (NASDAQ: AKAM) updated its quarterly and fiscal year 2018 revenue and earnings outlook.

As measured in constant currency, both revenue and non-GAAP net income per diluted share* for the second quarter in 2018 are anticipated to be at the midpoint of the previous guidance range of $658 million to $670 million and $0.79 to 0.83, respectively. Due to the strengthening of the dollar since guidance was issued on April 30, revenue and earnings for the second quarter are expected to face a headwind of $3 million and $0.01, respectively. As a result, the Company now anticipates its second quarter 2018 revenue range to be $658 million to $663 million and non-GAAP net income per diluted share* to be between $0.79 and $0.81.

(*** consensus is $0.80 and $665.85 million)

As measured in constant currency, full year revenue and non-GAAP net income per diluted share* are anticipated to be at the high end or above the previous guidance ranges of $2,690 million to $2,720 million and $3.15 to $3.25, respectively. Factoring in expected currency-related headwinds of $17 million and $0.05, respectively, for the full year, the Company now anticipates its full year 2018 revenue range to be $2,675 million to $2,705 million and non-GAAP net income per diluted share* to be between $3.20 and $3.30. The increase to the net income per share guidance is due to expected improvement in the Company's operating margins.

(*** consensus is $3.27 and $2.72 billion)

As previously announced, Chief Executive Officer Tom Leighton and Chief Financial Officer James Benson, along with other Company executives, will present a detailed company and financial overview, including forward-looking guidance, today at the Analyst Day beginning at 8:30 a.m. ET. The Company invites investors to listen to the live webcast of the presentation at here. A replay will be available within 24 hours after the event on the Company's website.

You May Also Be Interested In

• Investing.com’s stocks of the week
• HSBC Reiterates Buy Rating on Gail (India) Ltd. (GAIL:IN) (GAILF)
• Regency Centers (REG) Tops Q2 EPS by 2c