Akamai (AKAM) Q3 Earnings Shine On Revenue Strength
Zacks Investment Research | Oct 25, 2016 11:00PM ET
Shares of Akamai Technologies Inc. (NASDAQ:AKAM) surged 8.4% in after-hour trading following the company’s impressive third-quarter 2016 results.
Adjusted earnings (including stock-based compensation expense and amortization of capitalized stock-based compensation but excluding all other non-recurring items and related tax impact) of 51 cents per share beat the Zacks Consensus Estimate by 3 cents but decreased 3.8% on a year-over-year basis.
The decline was primarily due to lower operating margin which fully offset an improvement in revenues. On a sequential basis, earnings increased 8.5% due to better operating margin.
Revenues of $584.1 million beat the Zacks Consensus Estimate of $574 million and rose almost 6% from the year-ago quarter (up 5% adjusted for foreign exchange) and 2.1% from the previous quarter.
Excluding Internet Platform Customers, revenues increased 15% year over year (also 15% adjusted for foreign exchange). Revenues from Internet Platform Customers were $58 million, plunging 39% year over year (down 40% adjusted for foreign exchange) primarily due to their do-it-yourself (DIY) initiatives of building CDN.
Amazon.com (NASDAQ:AMZN) , Apple (NASDAQ:AAPL) , Facebook (NASDAQ:FB) , Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Netflix (NASDAQ:NFLX) are the six large customers in the Internet Platform group. Collectively these six companies accounted for 10% of the Akamai’s third-quarter 2016 revenues down from 17% in the year-ago quarter.
Notably, Amazon sports a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.