🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Akamai's revenue beat estimates on higher cloud service demand

Published 04/26/2016, 06:51 PM
© Reuters.  Akamai's revenue beat estimates on higher cloud service demand
EBAY
-
AAPL
-
AKAM
-
CMCSA
-

(Reuters) - Akamai Technologies Inc (NASDAQ:AKAM), a provider of services that speed up delivery of content over the internet, reported better-than-expected quarterly revenue and profit, helped by higher demand for its cloud security services.

Revenue from Akamai's cloud security business, which protects websites and data centers from cyber attacks, rose 46 percent to $80.7 million for the first quarter.

The company said on Tuesday it expects revenue for the current quarter to be between $566 million and $582 million and adjusted profit in the range of 62 cents to 65 cents per share.

Analysts on average were expecting revenue of $578.4 million and adjusted profit of 65 cents per share.

Akamai Chief Executive Tom Leighton said he expected the Olympics and U.S. presidential elections to lead to a sharp rise in Internet traffic this year.

The Cambridge, Massachusetts-based company is facing a slowdown in its media delivery business after its two largest customers, which the company declined to identify, recently switched to their own delivery networks.

As of Dec. 31, Akamai's customers included Apple Inc (NASDAQ:AAPL), eBay Inc (NASDAQ:EBAY) and Comcast (NASDAQ:CMCSA) Corp's NBCUniversal.

The company's net income fell to $74.9 million, or 42 cents per share, for the quarter ended March 31, from $77.7 million, or 43 cents per share, a year earlier.

Revenue rose to $567.7 million from $526.5 million.

Excluding items, the company earned 66 cents per share.

Analysts on average had expected earnings of 63 cents per share and revenue of $563.8 million, according to Thomson Reuters I/B/E/S.

The company's shares were up 0.1 percent at $52.73 in trading after the bell.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.