paidContent - Earnings: Akamai's Revs, Profit RiseBut Still Disappoint The Street

This story was written by Tameka Kee.
Sustained demand for Akamai’s content-delivery services kept the company in the black for Q2, with revenue and profits both up 5 percent year-over-year. Akamai (NSDQ: AKAM) grew its customer base by 9 percent, and managed to thrive throughout the heavy streaming during the Michael Jackson memorial, but its performance still fell far below analysts’ expectations.

Revenue came in at $204.6 million, for a profit of $0.19 per diluted share, but analysts expected $0.41 profit on $211 million in revenue. Investors punished the stock in after-hours trading (shares fell by 11 percent).

There were also concerns about Akamai’s overseas growth—international income remained relatively flat at 28 percent—as well as its forecast for the rest of the year. The company expects Q3 revenue to come in between $190 and $203 million, and Q4 revenue in the range of $205 to $218 million; both estimates are below The Street’s current forecasts (per TechTraderDaily).

1Q 20091Q 2008
EPS $0.19 $0.19
Net Income $36M $34.3M
Revenue $204.6M $194.0M

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By Tameka Kee