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Akamai Still Ascending: Fool by Numbers

On Thursday, Motley Fool Rule Breakers pick AkamaiTechnologies (Nasdaq: AKAM  ) released third-quarter 2006 earnings for the period ended Sept. 30, 2006.

  • Net income appeared to take a huge hit, but the comparable drop was due to a $256 million one-time tax benefit issued during last year's Q3. As a result, Akamai has close to $300 million in credits that substitute for cash in paying taxes. It's likely they'll be available for several years, which should protect the firm's ample cash flow.

  • After accounting for the tax credit, amortization of intangibles, equity-based compensation, and other special items, Akamai's $0.24 in per-share earnings easily bested targets. Sales, too, came in above expectations.

  • It wasn't immediately clear whether Akamai altered full-year guidance. Earlier, management had said to expect per-share earnings of $0.83 on $415 million in 2006 sales.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005







Net Profit










Diluted Shares





Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q3 2006

Q3 2005


Cash + ST Invest.




Accounts Rec.





Q3 2006

Q3 2005


Accounts Payable




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Checkup

Q3 2006

Q3 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




Find out why Fools always follow the money.

Related Companies:

  • Internap (Nasdaq: INAP  )
  • Limelight Networks
  • SAVVIS (Nasdaq: SVVS  )
  • VitalStream (Nasdaq: VSTH  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean.

Akamai is one of three Rule Breakers selections to have tripled. Care to find out the names of the other two? Click here to get 30 days of free access to the service.

Fool contributor Tim Beyers owns shares of Akamai. You can find out which other stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.

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10/28/2016 10:08 AM
AKAM $70.05 Up +1.24 +1.80%
Akamai Technologie… CAPS Rating: ****