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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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 of Motley 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.