Akamai Technologies Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Akamai Technologies, Inc. (NASDAQ:AKAM) will unveil its latest earnings on Wednesday, October 26, 2011. 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 profit of 26 cents per share, a rise of 13% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 26 cents during the last month. Analysts are projecting profit to rise by 13.9% versus last year to $1.15.

Past Earnings Performance: Last quarter, the company reported net income of 28 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $278.9 million in revenue this quarter, a rise of 10% from the year ago quarter. Analysts are forecasting total revenue of $1.14 billion for the year, a rise of 11.8% from last year’s revenue of $1.02 billion.

Analyst Ratings: Analysts are bullish on Akamai Technologies as nine analysts rate it as a buy, one rates it as a sell and nine rate it as a hold.

A Look Back: In the second quarter, profit rose 25.7% to $47.9 million (25 cents a share) from $38.1 million (20 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.9% to $277 million from $245.3 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 17.5%, 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 seen net income rise in three straight quarters. Net income rose 23.8% in the first quarter and 31% 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).

Stock Price Performance: During July 27, 2011 to October 20, 2011, the stock price had fallen $6 (-20.4%) from $29.48 to $23.48. 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. Shares are down $23.57 (-50.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

 

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