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Akamai Q3 Net Rises 65% but Misses on EPS; Share Buyback Program Launched

By Eric Volkman - Oct 23, 2013 at 9:34PM

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The company's bottom line rises to just under $80 million; it will repurchase up to $750 million worth of its stock.

Shares of Akamai ( AKAM -0.08% ) slipped in after-market trading following the release of its Q3 results today. For the quarter, the company posted revenue of $396 million, or 15% above the $345 million in the same period the previous year. Net income was $79.8 million ($0.44 per diluted share), or 65% higher than Q3 2012's $48.2 million ($0.27).

Analysts had been expecting revenue of $388 million and EPS of $0.47. 

Going forward, the company is anticipating Q4 EPS of $0.49 to $0.53 on revenue of $412 million to $430 million. Analysts are projecting a per-share net of $0.52 and top line of $424 million, on average. 

Following the announcement of the results, Akamai's stock declined by 6.8%, or $3.52, to $51.87 in after-hours trading.

The company also announced that its board has authorized a fresh share repurchase program for up to $750 million worth of its stock. The initiative is effective from this past Oct. 16 through Dec. 31, 2016. It replaces an expired one that saw the company spend around $30 million to buy back roughly 700,000 shares in Q3.

At present, Akamai has just over 178 million shares outstanding.

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