Akamai Technologies Earnings: Stock Up 12% as Shareholders Cheer
S&P 500 (NYSE:SPY) component Akamai Technologies Inc. (NASDAQ:AKAM) reported net income above Wall Street’s expectations for the fourth quarter. Akamai Technologies 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. .
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Akamai Technologies Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Akamai Technologies Inc. rose to $60.1 million (33 cents per share) vs. $52.5 million (27 cents per share) in the same quarter a year earlier. This marks a rise of 14.4% from the year earlier quarter.
Revenue: Rose 13.7% to $323.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations: Akamai Technologies Inc. reported adjusted net income of 45 cents per share. By that measure, the company beat the mean estimate of 31 cents per share. It beat the average revenue estimate of $311.3 million.
Quoting Management: “Akamai posted record results in the fourth quarter, with accelerated growth across our business.” said Paul Sagan, President and CEO of Akamai. “We believe our Content Delivery and Cloud Infrastructure solutions are stronger than ever, and we look forward to further enhancing our Cloud Infrastructure portfolio with the completed acquisition of Blaze and the planned acquisition of Cotendo, which may close as early as the first quarter.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 19.5% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6.5% and in the second quarter, the figure rose 25.7%.
The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 25 cents versus a mean estimate of net income of 26 cents per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 29 cents a share to 30 cents over the last thirty days. The average estimate hasn’t changed from $1.15 per share for the fiscal year.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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