Akamai Technologies Outruns Estimates Again
Akamai Technologies (NAS: AKAM) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Akamai Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins shrank, net margins improved.
Akamai Technologies logged revenue of $323.7 million. The 22 analysts polled by S&P Capital IQ anticipated a top line of $311.3 million. GAAP sales were 14% higher than the prior-year quarter's $284.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.45. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $0.33 for Q4 were 22% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.3%, 660 basis points worse than the prior-year quarter. Operating margin was 26.0%, 460 basis points worse than the prior-year quarter. Net margin was 18.6%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $304.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $1.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,139 members rating the stock outperform and 137 members rating it underperform. Among 846 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 825 give Akamai Technologies a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akamai Technologies is hold, with an average price target of $30.45.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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