Wed, Apr. 29, 3:39 PM
- Down sharply in AH trading yesterday after providing soft Q2 guidance to go with in-line Q1 results, Akamai (AKAM -1%) has erased most of its losses with the help of an upgrade to Buy from Deutsche. The firm has hiked its target by $6 to $79.
- Deutsche: "[W]e see the nearterm capitulation in the stock as an attractive entry point into secular growth drivers in FY16+ in Cloud Security and Media Delivery ... FY16+ growth drivers for AKAM's Media Delivery business in Internet HD and 4K Video Streaming, Multi-Player Gaming, etc. 2016 is also like to see meaningful spikes in Internet Web and Video traffic from the Summer Olympics, etc."
- On its CC (transcript), Akamai estimated a strong dollar will have a $3M impact on Q2 sales relative to Q1, and a $22M impact relative to Q2 2014. The company also noted it spent $67M in Q1 to buy back ~900K shares at an average price of "just over $67."
Tue, Apr. 28, 5:03 PM
- Akamai (NASDAQ:AKAM) has guided on its Q1 CC for Q2 revenue of $532M-$547M and EPS of $0.55-$0.59. The former is below a $544.8M consensus at the midpoint; the latter is entirely below a $0.63 consensus.
- As is the case for many other tech companies, a strong dollar has taken a heavy toll on the CDN leader: Q1 revenue growth was 20% Y/Y in constant currency, and 16% in actual dollars. International revenue rose 21% in constant currency, and 7% in actual dollars to $137.6M. U.S. revenue rose 20% to $389M.
- Media delivery revenue (lower-margin, affected by Apple's CDN buildout) rose 12% to $241.8M; performance/security solutions (higher-margin) rose 21% to $245M, and service/support solutions 12% to $39.7M.
- Shares have fallen to $71.00 AH. They went into earnings just $1.24 away from a high of $77.31.
- Q1 results, PR
Thu, Feb. 12, 3:04 PM
- On a day the Nasdaq is up 1% (thanks in part to Cisco), notable tech gainers include wireless broadband/Wi-Fi hardware provider Ubiquiti (UBNT +5.5%), M2M hardware/service provider Sierra Wireless (SWIR +6.2%), fiber access equipment vendor Zhone (ZHNE +3.3%), CDN leader Akamai (AKAM +5.8%), 3D printing plays Voxeljet (VJET +12.5%) and Materialise (MTLS +4.4%), satellite services/hardware vendor ViaSat (VSAT +4.4%), capacitor maker Kemet (KEM +5.8%), Chinese online real estate play Leju (LEJU +5.7%), and microcap solar installer RGS Energy (RGSE +24.3%).
- With markets trading higher, the list of notable decliners is smaller. It includes fixed wireless broadband provider Towerstream (TWER -8.9%), local services marketplace Angie's List (ANGI -5%), Chinese social networking/IM platform YY (YY -4.5%), and chip packaging IP provider Tessera (TSRA -6.1%).
- Sierra, Ubiquiti, and Zhone have joined the list of telecom/networking equipment firms rallying on account of Cisco's numbers. Akamai and ViaSat are adding to the gains they saw yesterday thanks to market-pleasing earnings (I, II), and Tessera is reversing the Wednesday gains it saw on account of a Q4 beat. Voxeljet also rose sharply yesterday.
- Previously covered: Baidu, TripAdvisor, Nvidia, FireEye, Zillow/Trulia, enterprise tech stocks
Tue, Feb. 10, 5:28 PM
- Akamai (NASDAQ:AKAM) has guided on its Q4 CC (webcast) for Q1 revenue of $517M-$534M and EPS of $0.60-$0.63, in-line with a consensus of $528.4M and $0.62. A semi-cautious outlook was expected on account of forex.
- Security services (a high-margin business) remain a strong point for the CDN leader: It now has 1.7K security customers, up from nearly 800 a year ago. Media (a lower-margin business) also outperformed, thanks in part to strong gaming services demand.
- GAAP costs/expenses rose 25% Y/Y in Q4 to $400.2M (compares with 23% revenue growth). $42M was spent on buybacks.
- Shares are at $64.61 AH, putting them near a 52-week high of $65.39. Q4 results, PR.
Tue, Feb. 10, 4:03 PM
Oct. 29, 2014, 6:48 PM
Oct. 16, 2014, 1:41 PM
- Stating checks indicate Akamai's (AKAM -2.2%) media traffic has dropped in October, Wells Fargo has downgraded the CDN leader to Market Perform, and cut its valuation range to $57-$61 from $70-$75.
- Wells is also worried about the impact of a strong dollar on Akamai's foreign sales. eBay disclosed yesterday forex is taking a toll on its 2H14 performance.
- Akamai was hit earlier this year by news major customer Apple is following Netflix's lead by building its own CDN; the CDN went live this summer. The company has made cutting its dependence on low-margin media delivery sales a priority.
- Rival Limelight (LLNW -2.5%), more dependent on media delivery than Akamai, is also off. Akamai's Q3 report is due on July 30.
Jul. 31, 2014, 9:11 AM| 4 Comments
Jul. 30, 2014, 4:56 PM
- Akamai (NASDAQ:AKAM) guides on its Q2 CC for Q3 revenue of $484M-$496M and EPS of $0.55-$0.58, largely above a consensus of $484.8M and $0.55.
- Gross margin rose 160 bps Y/Y in Q2 to 68.6%. But total GAAP costs/expenses rose 30% (exceeded revenue growth of 26%) thanks to big increases in sales/marketing and R&D spend.
- $71M was spent on buybacks at an average price of $54.89.
- Q2 results, PR
Jul. 24, 2014, 9:45 AM
- Akamai (AKAM +1.9%) has been upgraded to Outperform by Macquarie. Q2 results are due on July 30.
- Unisys (UIS +7.9%) has been upgraded to Positive by Susquehanna. Shares crashed yesterday following a Q2 miss.
- Chip assembly/test firms ASX (ASX -4.6%) and Siliconware Precision (SPIL -1.7%) have respectively been cut to Neutral and Underweight by JPMorgan.
- As part of a coverage launch for Chinese Internet stocks, Citi has started Dangdang (DANG +6.3%), Weibo (WB +1.4%), Jumei (JMEI +2.5%), and Cheetah Mobile (CMCM +2.1%) at Buy.
May 1, 2014, 4:59 PM
Feb. 6, 2014, 12:46 PM
Feb. 6, 2014, 9:15 AM
Feb. 5, 2014, 5:28 PM
- Akamai (AKAM) has guided on its Q4 CC for Q1 revenue of $426M-$442M and EPS of $0.51-$0.55, soundly above a consensus of $412.8M and $0.49.
- The CDN market leader says the guidance takes into account the renegotiation of a contract with its top media customer (widely believed to be Apple).
- Shares have added to the gains they initially saw on news of Akamai's Q4 beat.
Feb. 5, 2014, 4:02 PM| Comment!
Oct. 24, 2013, 9:56 AM
- Angie's List (ANGI -3.9%) has been cut to Neutral by B. Riley after missing Q3 estimates and issuing below-consensus Q4 revenue guidance. However, shares have pared the majority of yesterday's AH losses.
- F5 (FFIV +1.6%) has been cut to Neutral by BofA/Merrill after beating FQ4 estimates and issuing mixed FQ1 guidance. Shares have given back most of yesterday's AH gains.
- Fusion-io (FIO -23.6%) has been cut to Equal Weight by Morgan Stanley after providing FQ1 guidance that was far below consensus, and disclosing its CFO and sales chief are leaving.
- Akamai (AKAM -9.3%) has been cut to Neutral by Macquarie after providing disappointing Q4 guidance to go with a Q3 beat and buyback announcement.
- Citrix (CTXS +4.2%) has been cut to Neutral by Susquehanna after providing soft (but better-than-feared) Q4 guidance to go with Q3 numbers that were slightly above the guidance ranges given in a recent warning.
- Rogers (RCI -2.3%) has been cut to Neutral by Macquarie after posting Q3 results.
- Cadence (CDNS -6.2%) has been cut to Hold by Needham after slightly missing Q3 revenue estimates and providing soft Q4 revenue guidance.
- Vipshop (VIPS +0.9%) has been started at Outperform by CLSA.
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