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Akamai Technologies Narrows Q2 Outlook; Updates FY18 Forecast - Quick Facts

Ahead of its Analyst Day being held today, Akamai Technologies, Inc. (AKAM) updated its second quarter as well as fiscal year 2018 revenue and earnings outlook. The company lowered the top end of its earnings and revenue outlook range for the second quarter.

In addition, the company raised its adjusted earnings outlook for fiscal 2018, while lowering its revenue forecast range.

Akamai Technologies said that as measured in constant currency, it expects both revenue and adjusted net income for the second quarter in 2018 to be at the midpoint of the previous guidance range of $658 million to $670 million, and $0.79 to 0.83 per share, respectively.

The company noted that due to the strengthening of the dollar after it issued guidance on April 30, revenue and earnings for the second quarter are expected to face a headwind of $3 million and $0.01 per share, respectively.

As a result, the company now anticipates its second-quarter revenue range to be $658 million to $663 million, and adjusted net income to be between $0.79 and $0.81 per share.

On average, analysts polled by Thomson Reuters expect the company to earn $0.80 per share for the quarter on revenues of $665.85 million. Analysts' estimates typically exclude special items.

As measured in constant currency, Akamai now forecasts full year revenue and non-adjusted net income to be at the high end or above the previous guidance ranges of $2.690 billion to $2.720 billion and $3.15 to $3.25 per share, 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 in a range of $2.675 billion to $2.705 billion, and adjusted net income per share to be between $3.20 and $3.30 per share.

The increase to the net income per share guidance is due to expected improvement in the company's operating margins.

The Street expects earnings of $3.27 per share for the year on revenues of $2.72 billion.

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