Akamai (AKAM) guides on its Q4 call for Q1 revenue of $352M-$362M and EPS of $0.50-$0.52; the...

|About: Akamai Technologies, Inc. (AKAM)|By:, SA News Editor

Akamai (AKAM) guides on its Q4 call for Q1 revenue of $352M-$362M and EPS of $0.50-$0.52; the latter is above a consensus of $0.47, but the former is below a consensus of $370.7M. Akamai blames the top-line guidance on a decision to wind down certain low-margin media delivery contracts, as well as the sale of its ad targeting business and forex. Q4 EPS received a $0.04 boost from a tax rate change, and Q1 EPS is expected to benefit from tax rates and an extended depreciation cycle for servers (400 bps gross margin boost). Shares -15.9% AH. LLNW is likely to fall in sympathy.