Why Akamai Technologies Tanked
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Akamai Technologies (NAS: AKAM) tanked today by 13% after the company reported first-quarter earnings.
So what: Revenue rose 16% to $319 million, with adjusted earnings per share of $0.41. Both figures beat expectations, but there were still a couple other announcements holding back shares: guidance and the departure of CEO Paul Sagan.
Now what: Next quarter's profit is expected to be $0.36 to $0.38 per share, which is short of the $0.39 per share Street consensus. Sagan intends to transition out of his roles as president and CEO by the end of 2013, although he'll stay on until the company finds a successor. Those two uncertainties are offsetting the relatively solid quarter that Akamai just completed.
Interested in more info on Akamai Technologies? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.