Akamai Technologies on Tuesday reported fourth-quarter earnings that topped Wall Street targets while revenue missed. Full-year 2024 revenue guidance for AKAM stock came in below expectations. Akamai stock fell on the news.
The company reported Q4 earnings after the market close. For the quarter ending Dec. 31, Akamai earnings rose 23% to $1.69 per adjusted share. Revenue climbed 7% to $995 million, the Cambridge, Mass.-based company said.
Analysts expected Akamai earnings of $1.60 a share on revenue of $999 million. A year earlier, Akamai earned $1.37 a share on sales of $928 million.
Also in Q4, security revenue rose 18% to $471 million vs. estimates of $475 million.
"We were very pleased with our security and cloud computing results in 2023 which now represent 60% of total revenue," Chief Executive Tom Leighton said in a statement.
On the stock market today, AKAM stock tumbled more than 3% to 121. Akamai stock has gained 8% in 2024 and 50% over the past year.
AKAM Stock: 2024 Guidance
For full-year 2024, Akamai forecast revenue growth of 7% versus estimates for 8% growth to $4.11 billion.
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.
Meanwhile, Akamai said Q4 earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 12% to $426 million, topping estimates of $415 million.
And, Akamai stock has a Relative Strength Rating of 88 out of a best-possible 99, according to IBD Stock Checkup. Additionally it has a 95 Composite Rating and a 93 EPS Rating.
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