On Wednesday, Internet delivery expert Akamai Technologies
Revenue growth was healthy; income growth was even healthier; and the cash flow improvements should start a hospital, or something. That's an eminently Foolish stepladder of accelerating betterments.
That's what happens to companies that can show expanding margins.
The highest CAPS ratings in Akamai's corner of the business world belong to the two companies that can turn a profit today. Coincidence? I don't think so.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$187.0 |
$139.3 |
34.3% |
Net Profit |
$36.9 |
$19.2 |
92.5% |
EPS |
$0.20 |
$0.11 |
81.8% |
Diluted Shares |
185.7 |
183.2 |
1.4% |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
72.4% |
75.2% |
(2.8) |
Operating Margin |
28.5% |
19.5% |
9.0 |
Net Margin |
19.7% |
13.8% |
5.9 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$321.8 |
$341.0 |
(5.6%) |
Accounts Rec. |
$122.7 |
$86.9 |
41.2% |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Accounts Payable + Accrued Expenses |
$74.6 |
$35.4 |
110.8% |
Long-Term Debt |
$199.9 |
$200.0 |
(0.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Cash From Ops. |
$88.0 |
$52.9 |
66.5% |
Capital Expenditures |
$29.9 |
$32.9 |
(9.2%) |
Free Cash Flow |
$58.1 |
$19.9 |
191.4% |
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Akamai |
$5,760 |
61.4 |
|
Level 3 Communications |
$4,730 |
N/A |
|
NeuStar |
$2,123 |
24.1 |
|
Limelight Networks |
$238 |
N/A |
|
Internap Network Services |
$244 |
N/A |
Using the latest reported numbers from Capital IQ, a division of Standard & Poor's. Keep your partners close and the competition in your vest pocket.
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