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Wednesday, Oct 23
Akamai -6.7% AH due to Q4 guidance; $750M buyback announced
- Initially higher AH in response to its Q3 beat, Akamai (AKAM) has sold off after guiding on its CC for Q4 revenue of $412M-$430M and EPS of $0.49-$0.53; the midpoints of those ranges are below a consensus of $423.8M and $0.52.
- Akamai partly blames the guidance on e-commerce-related weakness - eBay recently stated Q4 U.S. demand could be soft, but then backtracked a bit - and negotiations with a major media client. The company in question could be Netflix, which has been moving traffic to its Open Connect CDN.
- Separately, Akamai has announced a new $750M buyback program, good for repurchasing 8.7% of shares at currently levels. The program replaces one that was used to buy back $30M worth of shares in Q3.
- Q3 results, PR