The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Akamai Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded.
Gross margins grew, operating margins increased, net margins contracted.
Akamai Technologies tallied revenue of $377.9 million. The 21 analysts polled by S&P Capital IQ expected revenue of $381.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $323.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. Non-GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.37 for Q4 were 12% higher than the prior-year quarter's $0.33 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 74.1%, 580 basis points better than the prior-year quarter. Operating margin was 29.4%, 330 basis points better than the prior-year quarter. Net margin was 18.1%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $357.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,046 members out of 3,194 rating the stock outperform, and 148 members rating it underperform. Among 704 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 676 give Akamai Technologies a green thumbs-up, and 28 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akamai Technologies is outperform, with an average price target of $42.71.
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