The firm maintained its "buy" rating on the stock.
The cloud service provider's "media traffic has been historically lumpy," analysts said.
Compared to a year ago, the management is seeing an unfavorable stacking or size of software releases, gaming, and social media projects, the firm stated.
However, the company is positioning itself for many years of strong cash-flow, and video acceleration will likely be a 2016 event, analysts added.
Shares closed Thursday's trading session up 2.39% to $74.96.
Based in Cambridge, MA, Akamai Technologies provides cloud services for delivering, optimizing, and securing online content and business applications in the U.S. and internationally.
Separately, TheStreet Ratings team rates AKAMAI TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AKAMAI TECHNOLOGIES INC (AKAM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 16.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although AKAM's debt-to-equity ratio of 0.20 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.97, which clearly demonstrates the ability to cover short-term cash needs.
- AKAMAI TECHNOLOGIES INC has improved earnings per share by 7.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AKAMAI TECHNOLOGIES INC increased its bottom line by earning $1.84 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.84).
- The gross profit margin for AKAMAI TECHNOLOGIES INC is currently very high, coming in at 79.94%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.76% trails the industry average.
- You can view the full analysis from the report here: AKAM Ratings Report