Akamai Technologies, Inc. (NASDAQ: AKAM)
Shares of Akamai Technologies exploded higher yesterday after the company reported earnings that beat street estimates and announced a billion dollar stock buyback program. Investors drove the stock up almost 25% to a high of $49.28 on heavy volume.
For its fourth quarter Akamai reported non-GAAP earnings of 72 cents per share, beating consensus estimate of 62 cents and registering a slight improvement over the prior year. Revenue for the quarter came in at $579.2 million, an 8% year-over-year increase and a sizable beat of consensus estimate of $568.7 million. For the full fiscal year revenue rose 12% to 2.2 billion and non-GAPP earnings were relatively flat at $2.52 per share. Akamai also announced that the Board of Directors approved a $1 billion share repurchase program that begins immediately and could run through 2018. Yahoo Finance
“Akamai’s solid fourth quarter performance capped off an excellent year on both the top and bottom lines,” said Dr. Tom Leighton, CEO of Akamai. “Revenue achievement in the quarter was driven by a robust online holiday shopping season, as well as continued rapid growth of our Cloud Security Solutions. Our Security business grew 50% year-over-year in constant currency and has now achieved an annualized run rate of nearly $300 million.” PR Newswire
Akamai Technical Analysis
AKAM has been in a very clean downtrend channel since the last earnings report in October, and has closed at or below all significant moving averages almost every day. The move on Wednesday began with a gap-up open that pushed the stock out of the channel and above the 9-day and 20-day moving averages. The breakout on Wednesday found resistance near the 50-day moving average and closed the day up 21% at $47.96. The major indices also gapped up at the open but gave most or all of it back by the end of the day, while AKAM closed only $1.32 off its high. Several intra-day levels were established yesterday. The busiest level was near $48 where the stock found strong resistance in early trading and solid support as the day progressed. The $47.70 level held a couple of times in the afternoon. Below that support is $47.00, $46.00 and low of the day at $44.68, which also puts the stock back into the channel. Resistance levels were near $48.00, $48.30, $49.00 and the high at $49.28. A bullish push through the 50-day moving average at $49.53 on volume could see longer-term resistance levels near $50.70 and $51.70. If a bullish trend reversal continues, AKAM might grind its way back into the gap beginning at $63.55.
Akamai Company Profile
Akamai Technologies, Inc. is a provider of cloud services for delivering, optimizing and securing online content and business applications. Its solutions include delivery of conventional content on Websites, tools that support the delivery and operation of cloud-based applications, as well as security solutions, and live and on-demand streaming video capabilities. The Company’s solutions include Media Delivery Solutions, Performance and Security Solutions, and Service and Support Solutions. Media Delivery Solutions are designed to enable enterprises to execute their digital media distribution strategies. Performance and Security Solutions are designed to utilize the Company’s core content and application delivery technologies of the Company to make the Internet work better. Service and Support Solutions offer professional services and solutions. Google Finance