Shares of Akamai Technologies Inc. (AKAM: Quote) gained more than 17 percent in extended trading on Wednesday after the provider of content delivery and cloud infrastructure services reported better-than-expected financial results for the first quarter.
The company's profit for the quarter surged 65 percent from last year on higher revenues and a tax and depreciation benefit.
Tom Leighton, CEO of Akamai said, "We are very pleased with our first quarter results, delivering better than expected revenue growth and EPS expansion. We saw strong acceleration in our media delivery solutions, made further traction in our management of network costs, and continued our investments to capitalize on what we see as the opportunities and megatrends shaping online business: cloud, mobile, video and security."
The Cambridge, Massachusetts-based company's first-quarter net income was $71.49 million or $0.39 per share, up from $43.23 million or $0.24 per share in the year-ago period.
Excluding items, adjusted earnings for the quarter were $93.23 million or $0.51 per share, compared to $65.30 million or $0.36 per share a year ago. On average, 21 analysts polled by Thomson Reuters estimated earnings of $0.46 per share. Analysts' estimates typically exclude special items.
Both reported and adjusted results for the quarter include a tax and depreciation benefit of $15 million or $0.08 per share from the retroactive reinstatement of the 2012 federal R&D tax credit and change in depreciation methodology effective January 2013.
Revenues for the quarter grew 15 percent to $368.05 million from $319.45 million in the year-ago period. Analysts had a consensus revenue estimate of $357.59 million.
Sales through resellers accounted for 20 percent of revenues for the quarter, while sales outside the U.S. accounted for 30 percent of revenue.
Akamai has $119 million remaining on its current share repurchase authorization, which runs through January 31, 2014.
AKAM closed Wednesday's regular trading at $36.09, up $0.62 or 1.75 percent on a volume of 7.07 million shares. In after-hours, the stock further gained $6.39 or 17.70 percent to $42.48.
by RTT Staff Writer
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