Will Healthy Revenue Growth Boost Akamai's Q4 Earnings?

Core Viewpoint - Akamai Technologies, Inc. is expected to report fourth-quarter 2024 results on February 20, with anticipated year-over-year revenue growth driven by strong demand across various sectors and an increase in security solutions demand [1][2]. Group 1: Company Developments - Akamai upgraded its Akamai Guardicore Segmentation and Enterprise Application Access solution to enhance performance, security, and scalability in cloud environments, providing real-time visualization of cloud workloads [3]. - The integration of Avesha Technologies into Akamai's Qualified Compute Partner Program aims to improve content delivery through advanced Kubernetes solutions, expected to positively impact Akamai's revenue [4]. - A strategic partnership with Smartbig USA Inc. will utilize Akamai's cloud computing platform to support global gaming infrastructure, enhancing Akamai's international presence and performance [5]. - Akamai acquired select assets from the bankrupt Edgio Inc., including customer contracts and patent rights, which is projected to be accretive and expand its customer base [6]. Group 2: Financial Expectations - Revenue estimates for the security segment are projected at $537.7 million, reflecting a 14.2$168.7 million, indicating a 24.9% growth [7]. - The overall revenue consensus estimate for the fourth quarter of 2024 is $1.01 billion, up from$995 million year-over-year, with adjusted earnings per share expected to decline to $1.52 from$1.69 [8]. Group 3: Earnings Predictions - The current earnings ESP for Akamai is 0.00%, indicating no expected earnings beat, despite a Zacks Rank of 2 (Buy) [9][10][11].