Akamai Technologies Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) will unveil its latest earnings on Wednesday, February 8, 2012. 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. .

Akamai Technologies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 31 cents per share, a rise of 3.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 13.9% versus last year to $1.15.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported profit of 25 cents per share versus a mean estimate of net income of 26 cents per share. In the second quarter, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $311 million in revenue this quarter, a rise of 9.2% from the year ago quarter. Analysts are forecasting total revenue of $1.15 billion for the year, a rise of 12.7% from last year’s revenue of $1.02 billion.

Analyst Ratings: Analysts seem relatively indifferent about Akamai Technologies with 12 of 22 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 6.5% to $42.3 million (23 cents a share) from $39.7 million (21 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 11.2% to $281.9 million from $253.6 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 14.6%, 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 seen net income rise in three straight quarters. Net income rose 25.7% in the second quarter and 23.8% in the first quarter.

Stock Price Performance: During December 5, 2011 to February 2, 2012, the stock price had risen $3.15 (10.8%) from $29.18 to $32.33. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 26, 2011 when shares rose for seven-straight days, rising 5.6% (+$1.63) over that span. It saw one of its worst periods between February 15, 2011 and March 1, 2011 when shares fell for 10-straight days, falling 13% (-$5.59) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com