Akamai Technologies Inc, a provider of services that help deliver Internet content faster, forecast current-quarter revenue and profit below analysts’ expectations, citing a strong dollar and slowing online traffic growth. Those projections, Chief Financial Officer James Benson said at the time in a conference call with analysts, included expected strain to its system from Microsoft Corp.’s rollout of Windows 10, the latest version of its operating system.
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The company pointed out that revenue from large media accounts are expected to drop in the fourth quarter.
The company forecast adjusted profit of 60-64 cents per share and revenue of $557 million-$577 million for the fourth quarter. There are now 220,363,712 shares in issue with the average daily volume traded being 1,641,746.
Akamai’s stock is down almost 14 percent to $65 per share in after hours trading after giving soft guidance on revenue and net income for the next quarter during its Q3 earnings call on Tuesday. Revenue increased 13.66% year-over-year to $541 million versus the $476 million reported.
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UBS analyst Steven Milunovich assigned a Buy rating to Akamai (NASDAQ: AKAM) today and set a price target of $74. Akamai Technologies, Inc. are listed in the Miscellaneous sector within NASDAQ. Akamai’s current market cap stands at $11.12 billion. On the bottom line, adjusted earnings stayed flat at $0.62 per diluted share. The Mean Recommendation sits at 2.1 which is based on 6 Strong Buy, 10 Buy and 9 Hold ratings. The Street is looking for EPS of $0.58 and revenue of $550.27 million. 65 with revenue estimates of 596.69M.
