On Wednesday, Motley Fool Rule Breakers pick Akamai Technologies
- Although our table reports data in GAAP, the content-delivery specialist prefers to exclude stock-based compensation, depreciation and amortization, and other non-cash charges in giving guidance.
- On that basis, Akamai booked $0.30 in per share earnings during Q2, up 50% year over year.
- Revenue also climbed by more than 50%. But free cash flow declined because of higher capital expenditures. Capex spent on network infrastructure such as servers rose by 138%.
- That doesn't seem to bother investors. The professional and amateur stock pickers following Akamai in our Motley Fool CAPS investor-intelligence database give it four out of five stars.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$152,654 |
$100,649 |
51.7% |
Net Profit |
$21,646 |
$11,264 |
92.2% |
EPS |
$0.12 |
$0.07 |
71.4% |
Diluted Shares |
185,601 |
175,612 |
5.7% |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
73.95% |
78.94% |
(4.99) |
Operating Margin |
20.28% |
17.18% |
3.10 |
Net Margin |
14.18% |
11.19% |
2.99 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$355,250 |
$259,261 |
37% |
Accounts Rec. |
$99,157 |
$63,963 |
55% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$71,933 |
$61,260 |
17.4% |
Long-Term Debt |
$199,960 |
$200,000 |
(0%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$37,329 |
$27,746 |
34.5% |
Capital Expenditures |
$29,692 |
$14,227 |
108.7% |
Free Cash Flow |
$7,637 |
$13,519 |
(43.5%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Find out what your peers had to say before the call.
- Then, check the last quarter's numbers.
- You'll find there are no more miracles for Akamai.
Akamai is one of 11 stocks in the market-beating Motley Fool Rule Breakers portfolio to have more than doubled. Discover the identifies of the rest with a 30-day free trial to the service. There's no obligation to subscribe.
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 Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Tim Beyers owned shares of Akamai at the time of publication. Find Tim's portfolio here and his latest blog commentary here. The Motley Fool's disclosure policy always adds up.