logo
  Join        Login             Stock Quote

Akamai Technologies (AKAM) Drops Amid Better-Than-Expected Q1, Buyback Extension

 April 25, 2012 06:45 PM
 


Akamai Technologies Inc. (NASDAQ:AKAM), which provides content delivery and cloud infrastructure services, reported a 15% decrease in first quarter earnings due to higher costs and expenses, as well as an increase in provision for taxes. Despite earnings and revenue exceeding Street's expectations, its shares fell 6.09% in aftermarket.

Earnings for the first quarter were $43.23 million or $0.24 per share, down from $50.62 million or $0.26 per share last year. Normalized earnings rose to $75.19 million or $0.41 per share from $72.23 million or $0.38 per share.

Revenue increased to $319.45 million from $275.95 million. Analysts had expected a profit of $0.38 per share on revenue of $310.70 million.

[Related -Akamai Technologies, Inc. (NASDAQ:AKAM): Mark Down These Insider Buys]

Sales through resellers and sales outside the United States accounted for 21% and 28%, respectively, of revenue for the first quarter of 2012.

Total costs and operating expenses for the quarter were $247.87 million, up from $203.21 million last year. Operating income declined to $71.58 million from $72.75 million.

Provision for income taxes for the quarter rose to $29.56 million from $24.06 million last year.

Additionally, Akamai said its board of directors has authorized a $150 million extension of its share repurchase program, effective for a 12-month period beginning on May 1, 2012. The company's goal for this program, which is expected to be funded by cash from operations, is primarily to offset dilution created by its equity compensation programs.

[Related -ETF Periscope: Sentiment On Main Street At Odds With Jubilation On Wall Street]

During the first quarter of 2012, under its current share repurchase program, the company repurchased about 223,000 shares of its common stock for $8 million, an average price of $35.45 per share.

As of March 31, 2012, the company had repurchased 18 million shares of its common stock for $491 million, at an average price of $26.86 per share since April 2009. The company had about 179 million shares of common stock outstanding as of March 31, 2012.

AKAM closed Wednesday's regular session up 2.68% at $38.75. The stock has been trading between $18.25 and $41.25 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.