A Look Ahead: Fastly's Earnings Forecast
Fastly (NYSE:FSLY) is preparing to release its quarterly earnings on Wednesday, 2025-08-06. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Fastly to report an earnings per share (EPS) of $-0.12.
The announcement from Fastly is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Historical Earnings Performance
In the previous earnings release, the company missed EPS by $0.04, leading to a 26.37% increase in the share price the following trading session.
Here's a look at Fastly's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.01 | 0 | -0.06 | -0.08 |
| EPS Actual | -0.05 | -0.03 | 0.02 | -0.07 |
| Price Change % | 26.0% | -21.0% | 0.0% | -14.000000000000002% |
Fastly Share Price Analysis
Shares of Fastly were trading at $6.47 as of August 04. Over the last 52-week period, shares are down 6.29%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Observations about Fastly
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Fastly.
A total of 3 analyst ratings have been received for Fastly, with the consensus rating being Neutral. The average one-year price target stands at $7.0, suggesting a potential 8.19% upside.
Analyzing Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Vtex, Couchbase and Backblaze, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Vtex, with an average 1-year price target of $8.7, suggesting a potential 34.47% upside.
- Analysts currently favor an Neutral trajectory for Couchbase, with an average 1-year price target of $22.68, suggesting a potential 250.54% upside.
- Analysts currently favor an Outperform trajectory for Backblaze, with an average 1-year price target of $7.0, suggesting a potential 8.19% upside.
Overview of Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Vtex, Couchbase and Backblaze, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Fastly | Neutral | 8.20% | $76.80M | -4.07% |
| Vtex | Buy | 2.90% | $40.98M | 0.34% |
| Couchbase | Neutral | 10.12% | $49.67M | -13.93% |
| Backblaze | Outperform | 15.50% | $19.26M | -12.00% |
Key Takeaway:
Fastly is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth. In terms of gross profit, Fastly is at the top. However, it has the lowest return on equity compared to its peers.
All You Need to Know About Fastly
Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly's strategy differs from traditional CDNs, which focus on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is in far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated nearly three fourths of its revenue in the United States in 2024.
Fastly: Financial Performance Dissected
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Fastly's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.2% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Fastly's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -27.1%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -4.07%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -2.7%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Fastly's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.42.
To track all earnings releases for Fastly visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
