Akamai Technologies Inc on Tuesday raised its full-year forecast and beat Wall Street estimates for quarterly revenue and profit as it sees the demand growing for its cybersecurity services and its core business of helping companies to speed up delivery of their content on the web.
With more people using their computers and smartphones to download videos, software and games from the internet, Akamai remained gaining as revenue from its media and carrier division rose 5 percent in the first quarter of year 2019.
In India, we are seeing good take up and streaming for cricket, Chief Executive Officer Tom Leighton told Reuters, as company is expecting boost in second-quarter growth by the ongoing event.
Akamai forecasted second-quarter revenue of between $688 million and $702 million against expectations of $693.3 million by analysts for the same.
For full-year, company said it is now seeing generating revenue of between $2.82 billion and $2.86 billion with after-adjustment earnings per share expectation of between $4.05 and $4.20.
Analysts on average were expecting profit of $4.10 per share and revenue of $2.84 billion, according to IBES data from Refinitiv.
The beating results caused the company’s share to jump by 5 percent to $84.05 in after hour trading on the day, while price of share has already saw an increase of 30 percent so far in this year.
Akamai’s Security business, which ensures the security of data center operations and content delivery, posted a rise of 27 percent in revenue for the first quarter raising it to $190 million.
In the first quarter ended March 31, company’s net income was $107.1 million, or 65 cents per share which was $53.71 million, or 31 cents per share in the same quarter a year ago.
Company’s total revenue jump by 5.7 percent to $706.5 million and beat the estimates of $698.3 million.
Excluding-items earning of $1.10 per share also beat the expectations of $1.02 in the reported quarter.