On Wednesday, Rule Breakers selection Akamai Technologies
- Excluding acquisition charges and a $1.65-per-share tax benefit from 2005, Akamai's $428.7 million in 2006 revenue produced $0.88 in per-share earnings, both of which beat Street estimates.
- Plenty of cash flowed to Akamai as a result. The Web weaver ended the year with $434 million in cash and securities, including $164.6 million in long-term investments and restricted stock. Meanwhile, cash from operations improved by 59% over the year prior.
- Yet none of that impresses the Fools tracking Akamai in our Motley Fool CAPS investor-intelligence database. They give the stock three very mediocre stars.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$428,672 |
$283,115 |
51.4% |
|
Net Profit |
$57,401 |
$327,998 |
(82.5%) |
|
EPS |
$0.34 |
$2.11 |
(83.9%) |
|
Diluted Shares |
176,767 |
156,944 |
12.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
78.05% |
80.34% |
(2.29) |
|
Operating Margin |
19.39% |
25.92% |
(6.53) |
|
Net Margin |
13.39% |
115.85% |
(102.46) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$268,736 |
$291,678 |
(7.9%) |
|
Accounts Rec. |
$86,232 |
$52,162 |
65.3% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$81,205 |
$54,471 |
49.1% |
|
Long-Term Debt |
$200,000 |
$200,000 |
0.0% |
Learn the ways of the balance sheet.
Cash Flow Checkup
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$131,967 |
$82,798 |
59.4% |
|
Capital Expenditures |
$69,328 |
$36,160 |
91.7% |
|
Free Cash Flow |
$62,639 |
$46,638 |
34.3% |
Find out why Fools always follow the money.
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Akamai is a Motley Fool Rule Breakers pick. David Gardner and his team of analysts have unearthed six stocks that have more than doubled in the first two years of this market-beating service. Akamai is one. Want to find out who the other five are? Click here to test-drive Rule Breakers for 30 days. There's no obligation to subscribe.
Microsoft is an Inside Value newsletter recommendation.
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.
Fool contributor Tim Beyers, ranked 1,640 out of more than 21,800 in Motley Fool CAPS, is a sucker for growth stocks and a regular contributor to David's Motley Fool Rule Breakers service. Tim owns shares of Akamai. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. The Motley Fool's disclosure policy always adds up.
