FSLY - Fastly Q2 earnings preview

2023-08-01 14:15:09 ET

Cloud software company Fastly ( NYSE: FSLY ) is set to report its second-quarter earnings on Tuesday after markets close.

Wall Street analysts expect Fastly to post earnings per share of -$0.10 on revenues of $118.91 million, which would represent growth of 16% year-over-year.

Fastly has seen substantial cuts to its earnings estimates in the past three months. Earnings per share forecasts have been revised downwards 9 times, compared to zero upward revisions, while revenue estimates have been revised downwards 1 time vs. 7 upward revisions.

Seeking Alpha analyst Philipp Stuelcken noted the appointment of Todd Nightingale as chief executive incited a transformation, leading to a boost in share prices.

"With regard to some key metrics indicating accelerating growth in the upcoming quarters and potential breakeven in free cash flow by 2026, a compelling investment case arises."

Fellow analyst Dair Sansyzbayev said," Fastly's stock valuation appears attractive, but profitability metrics have not improved as the business has scaled up."

Seeking Alpha analysts at large rate Fastly Buy. This compares with average Wall Street rating of Hold and SA Quant rating of Buy.

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