Tech Earnings Rollercoaster: Akamai’s Stock Surges, Cisco Shares Dip
Akamai Technologies Inc. (NASDAQ:AKAM) reported net income above Wall Street’s expectations for the fourth quarter. 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. 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.
“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.”
Cisco Systems Inc. (NASDAQ:CSCO) reported net income above Wall Street’s expectations for the second quarter. Net income for Cisco Systems Inc. rose to $2.2 billion (40 cents per share) vs. $1.52 billion (27 cents per share) in the same quarter a year earlier. This marks a rise of 44.6% from the year earlier quarter. Revenue rose 10.8% to $11.53 billion from the year earlier quarter. Cisco Systems Inc. reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 38 cents per share. It beat the average revenue estimate of $11.23 billion.
“We delivered strong performance this quarter with record revenue and earnings per share,” said John Chambers, Cisco chairman and CEO. “We are executing well on our three-year plan to drive earnings faster than revenue. Our operational focus continues to yield positive results — we hit our billion dollar expense reduction a quarter early — and our ongoing innovation enables our customers to solve their critical business needs. You will continue to see a focused and aggressive Cisco that is helping our customers use intelligent networks to transform their businesses.”
Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Juniper Networks, Inc. (NYSE:JNPR), Alcatel-Lucent (NYSE:ALU), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Extreme Networks, Inc (NASDAQ:EXTR), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Motorola Mobility Hldgs. Inc (NYSE:MMI), NetGear, Inc. (NASDAQ:NTGR), and ADTRAN, Inc. (NASDAQ:ADTN).
To contact the reporter on this story: Derek Hoffman at firstname.lastname@example.org
To contact the editor responsible for this story: Damien Hoffman at email@example.com