Akamai Tech beats expectations in 4th quarter
Akamai Technologies Inc. shares soared in extended trading Wednesday after the cloud services provider reported a better-than-expected fourth quarter.
The Cambridge, Mass.-based company helps websites deliver video and other content, such as software downloads, to users.
Akamai said that its business improved across all its offerings and territories, and that its gross margins improved on improvements to network efficiency.
The company reported net income of $80.3 million, or 44 cents per share, for the quarter versus $68.3 million, or 38 cents per share, in the prior year. On an adjusted basis, it earned 55 cents per share versus 50 cents per share. Revenue jumped 15 percent to $436 million from $377.9 million.
Analysts polled by FactSet were anticipating earnings of 52 cents per share on revenue of $423.4 million.
Akamai's shares jumped 18 percent to $56.11 in after-hours trading following the announcements. Its shares increased 93 cents to close regular trading at $47.42.