Akamai Technologies (AKAM) on Tuesday reported third-quarter earnings and revenue that topped Wall Street targets amid a shift to higher margin products. AKAM stock rose as company guidance came in above views.
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For the quarter ending Sept. 30, Akamai earnings rose 29% to $1.63 an adjusted share. Revenue climbed 9% to $965 million, said the Cambridge, Mass.-based company.
Analysts expected Akamai earnings of $1.50 a share on revenue of $944 million. A year earlier, Akamai earned $1.26 a share on sales of $882 million.
On the stock market today, AKAM stock rose 3.2% to 112.39 in extended trading. Akamai stock had gained 31% for 2023 as of Monday’s market close.
AKAM Stock Technical Ratings
For the current quarter ending in December, Akamai forecast EPS of $1.60 at the midpoint of guidance. Analysts had projected adjusted profit of $1.54 per share.
Akamai predicted revenue in a range of $985 million to $1.005 billion. That topped estimates for Q4 revenue of $987 million.
Akamai is the biggest provider of content delivery network services that also increase the speed of e-commerce transactions and business software downloads.
In addition, Akamai has expanded into cybersecurity services and edge computing – extending cloud services closer to where data is generated.
There, it competes with Cloudflare (NET).
Meanwhile, the company said Q3 earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 13% to $418 million, topping estimates of $394 million.
Also in Q3, security revenue rose 20% to $456 million. Security revenue growth accelerated from 14% in Q2 and 9% in Q1.
Heading into the Akamai earnings report, Akamai owned an entry point of 109.24. AKAM stock traded in a buy zone.
And, Akamai stock had a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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