Akamai Blows Quarter, Stock Down 10%

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Content delivery network Akamai Technologies (AKAM) is down 10% after-hours after missing sales and EPS consensus.

On the company’s earnings call, CEO Paul Sagan said Akamai “saw stronger pricing pressure in volume media business during Q2,” according to Reuters, and said it “saw churn rise among small customers.”

CAMBRIDGE, Mass. (AP) — Akamai Technologies Inc. says its second-quarter net income rose 5 per cent as demand for its Internet caching services grew despite the recession, but results missed expectations and shares tumbled 11 per cent after-hours.

Net income in the three months ended June 30 grew to $36 million, or 19 cents per share, from $34 million, or 19 cents per share, in the same period a year ago. Akamai said its adjusted earnings per share totaled 40 cents per share in the latest period.

Revenue edged up to $205 million from $194 million a year ago.

The revenue and earnings results fell short of the expectations of analysts polled by Thomson Reuters, who, on average, forecast adjusted profit of 41 cents per share on $211 million in revenue.