Bloomberg News

Akamai Jumps as Fourth-Quarter Profit Tops Analyst Estimates (2)

February 06, 2014

Akamai Technologies Inc. (AKAM:US), which helps speed Internet-data delivery for customers such as Apple Inc. and Sony Corp., soared to an almost seven-year high after beating analysts’ estimates for fourth-quarter profit.

The stock climbed 21 percent to $57.18, its highest closing price since February 2007. Leaving out one-time items, profit was 55 cents a share, topping the 51-cent average estimate (AKAM:US) of analysts compiled by Bloomberg. Sales jumped 15 percent to $436 million, surpassing the $423 million analysts projected.

The company also forecast first-quarter profit and sales ahead of analysts’ estimates, allaying investors’ concern that Apple may build its own content-delivery network, reducing its reliance on Akamai. The Cambridge, Massachusetts-based company is growing across all its business lines and geographic divisions, it said.

Profit will be 51 cents to 55 cents a share in the period ending in March, Akamai said on a conference call yesterday, compared with analysts’ 49-cent estimate. The company’s sales forecast (AKAM:US) of $426 million to $442 million compared with the average estimate of $413 million.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net


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Companies Mentioned

  • AKAM
    (Akamai Technologies Inc)
    • $63.2 USD
    • 0.70
    • 1.11%
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