Akamai Technologies (AKAM) posted third-quarter earnings and sales that above Wall Street expectations, owing to a move to higher-margin offerings. On Wednesday, AKAM shares jumped as the firm boosted its 2023 projection for security product growth.
After the market closed on Tuesday, the business disclosed third-quarter profits. Akamai’s profits per adjusted share increased 29% to $1.63 in the third quarter ended September 30. According to the Cambridge, Massachusetts-based corporation, revenue increased 9% to $965 million.
Analysts predicted Akamai to earn $1.50 per share on $944 million in revenue. Akamai made $1.26 per share on $882 million in revenue the previous year.
Today’s stock market closing for AKAM was 110.56, up 1.6%. In 2023, the stock of Akamai has increased by 32%.
AKAM Technical Analysis
Akamai expects EPS of $1.60 at the midpoint of its estimate for the current quarter, which ends in December. Analysts forecasted an adjusted profit of $1.54 per share.
Akamai forecasted sales ranging from $985 million to $1.005 billion. This surpassed the $987 million sales projection for the fourth quarter.
In a study, Raymond James analyst Frank Louthan stated, “The last few quarters have seen marked improvement in execution, which we believe is due to a variety of factors.” “First there are some leadership changes over the last year that we believe have helped the company get traction, especially in the security space. Secondly, the company has introduced a few bundled products allowing them to sell across various security products to smaller customers.”
Akamai is the largest supplier of content delivery network services, which speed up e-commerce transactions and corporate software downloads.