Akamai shares spike 20% on rosy forecast
February 6, 2014
In a week that started out badly for Akamai Technologies, the firm's shares surged on Thursday after it gave higher-than-expected guidance for first-quarter revenue and profit.
The strong forecast came in spite of Akamai's recent renegotiation of a contract with a major customer; shares had fallen Monday after an analyst's report suggested the customer is Apple, which the analyst said is building its own content-delivery network.
Shares in Cambridge, Mass.-based Akamai (Nasdaq: AKAM) closed up 20.6 percent, at $57.18, on Thursday.
The provider of Internet content delivery and other technologies said revenue for the first quarter is expected at between $426 million and $442 million, well above an analyst consensus estimate of $412.8 million, according to investment news site Seeking Alpha.
Earnings-per-share are expected at between 51 and 55 cents for the quarter, above a consensus estimate of 49 cents.