what happened
Shares of Akamai Technologies (NASDAQ: AKAM) today, with 12% lower than 11:15 a.m. EST, after the company reported fourth-quarter earnings. The results exceeded expectations, but Akamai also announced a corporate reorganization.
Approximately
Revenue in the fourth quarter was $ 846 million, which is above the $ 829.5 million expected in sales analysts. This resulted in an adjusted earnings per share of $ 1.33, also slightly ahead of the $ 1.31 consensus estimate. Technology company CDN (Content Delivery Network) repurchased $ 72.5 million worth of inventory during the quarter.
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“I am very proud of how the Akamai team supported our global customers and billions of Internet users who relied on the Internet more than ever before during the COVID-19 pandemic,” CEO Tom Leighton said in a statement. . “As we look forward to 2021, we expect to continue to invest in innovation and new products with the goal of accelerating our leaders in security, edge computing and video streaming.”
Now what
Akamai streamlines its organizational structure by creating two new segments, the Security Technology Group and Edge Technology Group. The Security Technology Group will include Akamai’s security offerings, while the Edge Technology Group will focus on Akamai’s core media delivery business. The company expects to record $ 7 million in restructuring costs in the first quarter.
Guidance calls for revenue in the first quarter of $ 822 million to $ 836 million, compared to Wall Street’s current expectation of $ 821 million. Adjusted earnings per share are forecast at $ 1.28 to $ 1.31 this quarter, while analysts are modeled at $ 1.29.