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S&P 500 (NYSE:SPY) component Akamai Technologies Inc. (NASDAQ:AKAM) reported higher profit for the third quarter as revenue showed growth. 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 Inc. Earnings Cheat Sheet
Results: Net income for Akamai Technologies Inc. rose to $48.2 million (27 cents per share) vs. $42.3 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 14.1% from the year-earlier quarter.
Revenue: Rose 22.5% to $345.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Akamai Technologies Inc. fell short of the mean analyst estimate of 29 cents per share. It beat the average revenue estimate of $325.7 million.
Quoting Management: “Akamai experienced its fourth consecutive quarter of accelerating revenue growth and delivered higher margins,” said Paul Sagan, President and CEO of Akamai. “We continued to capitalize on our investments in cloud computing, web security, mobile services, and online video by expanding our product portfolio, while effectively managing the cost and efficiency of our network. These efforts paid off in both the Company’s top and bottom line performance.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.6%, with the biggest boost coming in the most recent quarter when revenue rose 22.5% from the year earlier quarter.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by 2 cents.
The profit increase last quarter interrupts a two-quarter year-over-year profit decreases. Net income fell 7.7% in the second quarter and in the first quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 34 cents a share to 35 cents over the last ninety days. The average estimate for the fiscal year is $1.23 per share, a rise from $1.18 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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