Akamai Technologies Earnings: Here’s Why Shares are Crashing Now
Akamai Technologies Inc. (NASDAQ:AKAM) delivered a profit and beat Wall Street’s expectations, BUT missed the revenue expectation. Shares are down 16.07%.
Akamai Technologies Inc. Earnings Cheat Sheet
Results: Net income increased 63.12% to $98 million (54 cents per diluted share) in the quarter versus a net gain of $60.08 million in the year-earlier quarter.
Revenue: Rose 16.76% to $378 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Akamai Technologies Inc. reported adjusted net income of 54 cents per share. By that measure, the company beat the mean analyst estimate of $0.47. It missed the average revenue estimate of $381 million.
Quoting Management: “With strong revenue and profit performance in the fourth quarter, Akamai closed out 2012 with record results on both the top and bottom line,” said Tom Leighton, CEO of Akamai. “Throughout the year, we announced new products across every solution line, closed a record number of strategic acquisitions, and achieved margin expansion through continued improvement in our network efficiency even as we expanded its capacity worldwide to meet rising demand for Akamai services. We believe these efforts have positioned us well to help our customers capitalize on the opportunities, and mitigate the challenges, of conducting business online.”
Key Stats (on next page)…