Content delivery company Fastly (NYSE: FSLY) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Fastly beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $140.6 million, up 2% year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Is Fastly a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Fastly’s revenue to grow 3.3% year on year to $137.9 million, slowing from the 13.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fastly has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Fastly’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.7%, and Twilio reported revenues up 12%, topping estimates by 2.6%. F5’s stock price was unchanged after the resultswhile Twilio was up 2.2%.
Read our full analysis of F5’s results here and Twilio’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 15% on average over the last month. Fastly is up 12.9% during the same time and is heading into earnings with an average analyst price target of $6.81 (compared to the current share price of $5.79).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
