Akamai Technologies Inc. Earnings Cheat Sheet: Beats Forecasts

S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the internet information provider rose to $42.3 million (23 cents per share) vs. $39.7 million (21 cents per share) in the same quarter a year earlier. This marks a rise of 6.5% from the year earlier quarter.

Revenue: Rose 11.2% to $281.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: AKAM reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 26 cents per share. Analysts were expecting revenue of $278.9 million.

Quoting Management: Akamai also announced today that David Kenny resigned as president and director of the Company. “As a director, David was a strong advocate for innovation, mobile capabilities and global expansion. As president, hehelped to re-align the organizationto deliverfaster onthose critical strategies,”Mr. Sagan said. “Thanks in part to David’s leadership, we have established a strong path for growth thatwe intend to follow for many years to come.”

Key Stats:

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 16.3%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.8% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 2.4 percentage points to 66.9% from the year earlier quarter. Over that time, margins have contracted on average 2.5 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 25.7% and in the first quarter, the figure rose 23.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 2 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 31 cents per share, down from 35 cents ninety days ago. At $1.15 per share, the average estimate for the fiscal year has fallen from $1.21 ninety days ago.

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), and Google Inc. (NASDAQ:GOOG).

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(Source: Xignite Financials)