Akamai Technologies Earnings: Here’s Why the Stock is Rising Now

Akamai Technologies Inc. (NASDAQ:AKAM) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.42%.

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Akamai Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 19.44% to $0.43 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 15.2% to $368 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Akamai Technologies Inc. reported adjusted EPS income of $0.43 per share. By that measure, the company missed the mean analyst estimate of $0.46. It beat the average revenue estimate of $357.59 million.

Quoting Management: “We are very pleased with our first quarter results, delivering better than expected revenue growth and EPS expansion,” said Tom Leighton, CEO of Akamai. “We saw strong acceleration in our media delivery solutions, made further traction in our management of network costs, and continued our investments to capitalize on what we see as the opportunities and megatrends shaping online business: cloud, mobile, video and security.”

Key Stats (on next page)…

Revenue decreased 2.61% from $377.87 million in the previous quarter. EPS decreased 10.42% from $0.48 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.47 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $2.00 to a profit of $1.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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