Breaking News

Home Depot Says 56 Million Payment Cards at Risk From Hack
Tweet TWEET

Akamai Jumps as Fourth-Quarter Profit Tops Analyst Estimates

Akamai Technologies Inc. (AKAM), which helps speed Internet-data delivery for customers such as Apple Inc. and Sony Corp., soared to an almost seven-year high after beating analysts’ estimates for fourth-quarter profit.

The stock climbed 21 percent to $57.18, its highest closing price since February 2007. Leaving out one-time items, profit was 55 cents a share, topping the 51-cent average estimate of analysts compiled by Bloomberg. Sales jumped 15 percent to $436 million, surpassing the $423 million analysts projected.

The company also forecast first-quarter profit and sales ahead of analysts’ estimates, allaying investors’ concern that Apple may build its own content-delivery network, reducing its reliance on Akamai. The Cambridge, Massachusetts-based company is growing across all its business lines and geographic divisions, it said.

Profit will be 51 cents to 55 cents a share in the period ending in March, Akamai said on a conference call yesterday, compared with analysts’ 49-cent estimate. The company’s sales forecast of $426 million to $442 million compared with the average estimate of $413 million.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.