The 10-second takeaway
For the quarter ended March 31 (Q1), Akamai Technologies beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank.
Gross margins grew, operating margins dropped, and net margins contracted.
Akamai Technologies tallied revenue of $319.4 million. The 20 analysts polled by S&P Capital IQ predicted revenue of $310.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $276.0 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 $0.41. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share on the same basis. GAAP EPS of $0.24 for Q1 were 7.7% lower than the prior-year quarter's $0.26 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 67.9%, 20 basis points better than the prior-year quarter. Operating margin was 22.4%, 400 basis points worse than the prior-year quarter. Net margin was 13.5%, 480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $314.8 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $1.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,070 members out of 3,207 rating the stock outperform, and 137 members rating it underperform. Among 801 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 777 give Akamai Technologies a green thumbs-up, and 24 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 $36.91.
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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.