Why Akamai’s Operating Income Fell Despite Revenue Growth & Earnings Beat
Akamai’s revenue increased 8% driven by strong growth in performance & security solutions, and services & support solutions, partially offset by a fall in media delivery solutions revenue. The company’s net revenue at $568 million was just ahead of the consensus estimate of $563 million. Operating income, however, excluding the impact of restructuring charges and amortization of intangible assets, fell 0.6% as Akamai’s expenses increased at a faster rate then revenues. Barring sales & marketing expenses, which fell 1% year over year, cost of sales, research & development, and general & administrative expenses increased in double digits.
Despite a fall in operating income, the company managed to grow its non-GAAP diluted EPS by 8% year over year, with higher interest income and lower other expenses and taxes. Non-GAAP diluted EPS at $0.66 was three cents better than what the analysts had expected.
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Have more questions about Akamai? See the links below:
- What’s Akamai’s Revenue & Earnings Breakdown Based On Expected 2016 Results?
- What’s Akamai’s Fundamental Value Based On Expected 2016 Results?
- How Has Akamai’s Revenue Composition Changed In The Last Five Years?
- What Has Led To A ~100% Increase In Akamai’s Revenues & EBITDA In The Last Five Years?
- By What Percentage Can Akamai’s Revenues Grow Over the Next Five Years?
- How Are Akamai’s Revenue & EBITDA Composition Expected To Change By 2020?
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