Akamai Technologies, Inc. Soars After Hours As Apple Deal Drives Fantastic Guidance
Shares of Akamai Technologies jumped 17% higher in after-hours action, setting fresh 52-week highs in the process.
The jump came in reaction to Akamai's fourth-quarter report. Revenue jumped 15% higher year-over-year, landing at $436 million and beating the $422 million Wall Street estimates. Non-GAAP earnings rose 10%, stopping at $0.55 per share. Analysts were looking for $0.52 per share.
While impressive, these figures only lifted Akamai shares 5% in early after-hours action. The bulk of the gains came later, as management announced forward guidance on the conference call with analysts.
In the first quarter of fiscal year 2014, Akamai expects revenues between $426 million and $442 million. Even the low end of that range is well above Wall Street's $413 million target for that period. Non-GAAP earnings should come in at roughly $0.53 per share, give or take $0.02. Again, the bottom end of this range sits above the current $0.49 analyst target.
This guidance includes the new terms of Akamai's Apple contract. Terms of the renewed contract were not disclosed, but the high forecasts point to a favorable agreement.
"We accomplished a great deal in 2013 and remain confident in our ability to execute on our plans for the long-term," said Akamai CFO Jim Benson on the conference call.
"Akamai is stronger and more profitable than ever, and I believe that our financial results demonstrate that the fundamentals across our business are solid and that we continue to be a key player in the growth of the Internet," added CEO Tom Leighton.
The article Akamai Technologies, Inc. Soars After Hours As Apple Deal Drives Fantastic Guidance originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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