On Thursday, Motley Fool Rule Breakers pick AkamaiTechnologies
- Net income appeared to take a huge hit, but the comparable drop was due to a $256 million one-time tax benefit issued during last year's Q3. As a result, Akamai has close to $300 million in credits that substitute for cash in paying taxes. It's likely they'll be available for several years, which should protect the firm's ample cash flow.
- After accounting for the tax credit, amortization of intangibles, equity-based compensation, and other special items, Akamai's $0.24 in per-share earnings easily bested targets. Sales, too, came in above expectations.
- It wasn't immediately clear whether Akamai altered full-year guidance. Earlier, management had said to expect per-share earnings of $0.83 on $415 million in 2006 sales.
(Figures in thousands, except per-share data)
Income Statement Highlights
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
---|---|---|---|---|
Sales |
$108,790 |
$111,495 |
$75,713 |
47.3% |
Net Profit |
-- |
$14,019 |
$272,260 |
(94.9%) |
EPS |
$0.22 |
$0.08 |
$1.71 |
(95.3%) |
Diluted Shares |
-- |
177,063 |
160,362 |
10.4% |
Get back to basics with a look at the income statement.
Margin Checkup
Q3 2006 |
Q3 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
77.59% |
79.80% |
(2.21) |
Operating Margin |
19.52% |
24.83% |
(5.31) |
Net Margin |
12.57% |
359.59% |
(347.02) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$276,654 |
$67,046 |
312.6% |
Accounts Rec. |
$67,375 |
$43,935 |
53.4% |
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Accounts Payable |
$73,322 |
$50,982 |
43.8% |
Long-Term Debt |
$200,000 |
$200,000 |
0% |
Learn the ways of the balance sheet.
Cash Flow Checkup
Q3 2006 |
Q3 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$48,490 |
$19,499 |
148.7% |
Capital Expenditures |
$16,451 |
$8,531 |
92.8% |
Free Cash Flow |
$32,039 |
$10,968 |
192.1% |
Find out why Fools always follow the money.
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Related Foolishness:
- Get Akamai access.
- Is Akamai good? Or bad?
- Hey, Akamai ... Cowabunga!
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.
Akamai is one of three Rule Breakers selections to have tripled. Care to find out the names of the other two? Click here to get 30 days of free access to the service.
Fool contributor Tim Beyers owns shares of Akamai. You can find out which other stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.