(Boursier.com) — Akamai , the American IT services provider, is being shaken up on Wall Street, expected to fall by almost 9%, after publishing revenues lower than market expectations. The group thus posted a turnover of $987 million in the 1st quarter, compared to nearly $990 million anticipated by market analysts.
The group forecasts Q2 revenue of between $967 million and $986 million, compared to an average estimate of $1 billion. The group also expects adjusted earnings per share for the second quarter to be between $1.51 and $1.56, compared to analysts’ estimates of higher than $1.60.
“The slowdown in demand for cloud security services should weigh on the first quarter,” management warned at the start of the year, while the group was forecasting revenues ranging from $980 million to $1 billion over the past period, for adjusted EPS between $1.59 and $1.64. “We are pleased to continue to execute on our long-term strategy to drive revenue growth in our security and compute solutions,” commented Dr. Tom Leighton, CEO of Akamai. “Both solutions had a strong start to 2024 and collectively grew more than 20% year-over-year, accounting for almost two-thirds of total revenue. We are particularly excited about our project acquisition of Noname Security, which will enhance Akamai’s existing API security solution and accelerate our ability to meet growing customer demand.”
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