S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) reported net income above Wall Street’s expectations for the second 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 Second Quarter
Results: Net income for the internet information provider rose to $47.9 million (25 cents per share) vs. $38.1 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 25.7% from the year earlier quarter.
Revenue: Rose 12.9% to $277 million from the year earlier quarter.
Actual vs. Wall St. Expectations: AKAM reported adjusted net income of 35 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. Analysts were expecting revenue of $278 million.
Quoting Management: “Trends in cloud computing, Internet security, mobile connectivity, and the proliferation of online video have continued to drive our customers’ online initiatives and our business success,” said Paul Sagan, CEO of Akamai. “With the scale, data and software underlying the Akamai intelligent platform, combined with our deep industry expertise, we believe Akamai is uniquely capable of enabling our customers’ online businesses to grow revenues and reduce costs. We continue to position Akamai to lead the next evolution of cloud computing by investing in the business to build new and innovative solutions that leverage the Company’s core competencies.”
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 18%, 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 first quarter, net income rose 23.8% and in the fourth quarter of the last fiscal year, the figure rose 31%.
Gross margin shrank 3.1 percentage points to 67.6%. The contraction appeared to be driven by increased costs, which rose 24.8% from the year earlier quarter while revenue rose 12.9%.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.
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).
(Source: Xignite Financials)