Akamai Technologies shares fell sharply on Wednesday in the premarket after the cybersecurity and computing company reported a disappointing first quarter on Tuesday.
It had posted reported earnings of $119.2 million, or 73 cents-a-share, in the quarter, compared with $156 million, or 94 cents-a-share, for the same period a year earlier.
Adjusted for one-time items, Akamai earnings rose 1% to $1.39 per share. Revenue increased 7% to $904 million, driven by strong performance of its security and computing services business. Analysts polled by FactSet had forecast earnings of $1.42 per share on sales of $903.4 million.
Akamai (ticker: AKAM) shares dropped13.7% to $98.20 in premarket trading on Wednesday. The stock has fallen 2.8% so far in 2022.
RBC Capital analyst Rishi Jaluria trimmed his price target on Akamai’s shares to $135 from $140, following the “disappointing” quarterly results, but he retained an Outperform rating on the stock.
“Stepping back, we continue to like Akamai’s market leadership position, growing security business, and margin expansion opportunities, which we think are underappreciated by investors,” the RBC analysts wrote in a note on Tuesday.
Write to Lina Saigol at [email protected]
Credit: www.marketwatch.com /