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Thursday, 02/07/2013 9:21:46 AM

Thursday, February 07, 2013 9:21:46 AM

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Akamai Shares Plunge After Revenue, Forecast Miss Estimates
By Sarah Frier - Feb 6, 2013 10:01 PM MT.

http://www.bloomberg.com/news/2013-02-06/akamai-tumbles-after-fourth-quarter-sales-miss-analyst-estimates.html?cmpid=yhoo

Akamai Technologies Inc., a company that helps customers speed the delivery of online content, tumbled as much as 17 percent in late trading after its quarterly revenue and forecast missed estimates.

Fourth-quarter sales climbed 17 percent to $378 million, the Cambridge, Massachusetts-based company said yesterday in a statement. That trailed the $381.4 million predicted by analysts on average, according to data compiled by Bloomberg. For the first quarter, the company forecast revenue of $352 million to $362 million, short of the $369.8 million estimate.

The results showed signs of softening demand for Akamai’s services, which help customers such as news sites and Web retailers speed up their online offerings, said Chad Bartley, an analyst at Portland, Oregon-based Pacific Crest Securities.

“Revenue was definitely lighter than expectations,” he said. “Growth decelerated quite a bit in the fourth quarter.”

Akamai shares fell as low as $34.60 in extended trading after the earnings report. The stock, up 1.6 percent this year, had closed at $41.58 yesterday in New York.

The results marked the first quarterly earnings report for Tom Leighton, a company co-founder who took the chief executive officer job on Jan. 1. He was named to the post in December after an eight-month search.

Even with the sales shortfall, earnings topped analysts’ projections last quarter. It posted an adjusted profit of 54 cents a share, compared with an average estimate of 50 cents.

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