Akamai Q3 Net Rises 65% but Misses on EPS; Share Buyback Program Launched
Oct 23rd 2013 9:34PM
Updated Oct 23rd 2013 9:36PM
Shares of Akamai slipped in after-market trading following the release of its Q3 results today. For the quarter, the company posted revenue of $396 million, or 15% above the $345 million in the same period the previous year. Net income was $79.8 million ($0.44 per diluted share), or 65% higher than Q3 2012's $48.2 million ($0.27).
Analysts had been expecting revenue of $388 million and EPS of $0.47.
Going forward, the company is anticipating Q4 EPS of $0.49 to $0.53 on revenue of $412 million to $430 million. Analysts are projecting a per-share net of $0.52 and top line of $424 million, on average.
Following the announcement of the results, Akamai's stock declined by 6.8%, or $3.52, to $51.87 in after-hours trading.
The company also announced that its board has authorized a fresh share repurchase program for up to $750 million worth of its stock. The initiative is effective from this past Oct. 16 through Dec. 31, 2016. It replaces an expired one that saw the company spend around $30 million to buy back roughly 700,000 shares in Q3.
At present, Akamai has just over 178 million shares outstanding.
The article Akamai Q3 Net Rises 65% but Misses on EPS; Share Buyback Program Launched originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Akamai. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.