NEW YORK (TheStreet) -- Akamai Technologies (AKAM - Get Report) shares are climbing, up 1.6%, in after-market trading on Thursday following the release of its first quarter earnings results.
The company posted a year over year quarterly revenue increase of 23% to $454 million, beating analysts estimates of $439.3 million.
The content delivery and cloud infrastructure service provided reported net income of $105 million, or 58 cents per diluted share, ahead of analysts estimates by 4 cents.
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TheStreet Ratings team rates AKAMAI TECHNOLOGIES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AKAMAI TECHNOLOGIES INC (AKAM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AKAM's revenue growth has slightly outpaced the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 15.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AKAM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.59, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.82% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AKAM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- AKAMAI TECHNOLOGIES INC has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AKAMAI TECHNOLOGIES INC increased its bottom line by earning $1.61 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($2.24 versus $1.61).
- You can view the full analysis from the report here: AKAM Ratings Report