Limelight Networks (LLNW) Gains As Market Dips: What You Should Know
In the latest trading session, Limelight Networks (LLNW) closed at $5.49, marking a +0.55% move from the previous day. This change outpaced the S&P 500's 0.78% loss on the day. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq added 0.29%.
Wall Street will be looking for positivity from LLNW as it approaches its next earnings report date. The company is expected to report EPS of $0.01, up 133.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $57.04 million, up 24.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.06 per share and revenue of $233.44 million. These totals would mark changes of +400% and +16.35%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LLNW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LLNW is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, LLNW currently has a Forward P/E ratio of 91. For comparison, its industry has an average Forward P/E of 31.85, which means LLNW is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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