Akamai Earnings Cheat Sheet: Double-Digit Sales Growth Highlights Demand
Lower costs helped S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) pull in a higher profit in the first quarter. Akamai Technologies, Inc. provides a distributed computing platform for accelerating and improving delivery of content and applications over the Internet. The company also offers solutions that enhance tools that people use for business transactions. .
Akamai Technologies Earnings Cheat Sheet for the First Quarter
Results: Net income for Akamai Technologies, Inc. rose to $50.6 million (26 cents/share) vs. $40.9 million (22 cents/share) in the same quarter a year earlier. A rise of 23.8% from the year earlier quarter.
Revenue: Rose 15% to $276 million YoY.
Actual vs. Wall St. Expectations: AKAM reported adjusted net income of 38 cents/share. By this measure, it beat the mean analyst estimate of 37 cents/share. Estimates ranged from 36 cents per share to 38 cents per share.
Quoting Management: “Continued demand for our value-added solutions, now comprising almost 60 percent of our business, drove our strong results in the first quarter,” said Paul Sagan, CEO of Akamai. “We have built a portfolio of cloud computing solutions that leverages our intelligent Internet platform and is designed to address the diverse needs of businesses on the Web.”
Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.8% from the year earlier quarter.
The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 31% and in the third quarter of the last fiscal year, the figure rose 21.3%.
Competitors to Watch: Limelight Networks, Inc. (NASDAQ:LLNW), Intl. Business Machines Corp. (NYSE:IBM), InterNAP Network Services (NASDAQ:INAP), Rackspace Hosting, Inc. (NYSE:RAX), SAVVIS, Inc. (NASDAQ:SVVS), Equinix, Inc. (NASDAQ:EQIX), Level three Communications, Inc. (NASDAQ:LVLT), Yahoo! Inc. (NASDAQ:YHOO), Onstream Media Corp (NASDAQ:ONSM), Apple (NASDAQ:AAPL), and Google Inc. (NASDAQ:GOOG).
Today’s Performance: Shares of AKAM are down 8% in after hours trading.