Akamai Technologies (AKAM 67.73, +4.07) has spiked 6.4% in response to better than expected quarterly results and upbeat guidance.
The company, which specializes in the delivery of cloud content, reported above-consensus fourth quarter earnings of $0.69 per share on a 7.7% year-over-year spike in revenue to $663.50 million, which was also ahead of expectations.
Fourth quarter Web Division revenue increased 17.0% year-over-year to $355 million, outpacing its full-year growth rate of 15.0% to $1.30 billion.
Media Division revenue declined 3.0% year-over-year to $284 million. For the full year, Media Division revenue fell 1.0% to $1.12 billion.
Enterprise and Carrier Division revenue jumped 24.0% year-over-year to $24 million. For the full year, Enterprise and Carrier Division revenue grew 14.0% to $81 million.
Looking at the geographic breakdown, revenue in the United States ticked up 1.0% to $430 million while International revenue jumped 21.0% to $234 million.
Akamai recorded a $52 million restructuring charge that was associated with workforce reductions, facility closures, and capitalized software impairments from decisions to deprioritize disappointing investment areas, mostly in the Media Division.
Going forward, Akamai expects that revenue for the first quarter will be between $647 million and $659 million, which is shy of market expectations. However, the company's guidance for first quarter earnings between $0.67 and $0.70 per share is ahead of market estimates. For the full year, the company expects to report above-consensus earnings between $2.90 per share and $3.00 per share. Full year revenue is expected between $2.67 billion and $2.71 billion, which is in-line with market estimates.