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Omar Venerio
Omar Venerio
Articles (1574) 

US Stock Market Rises Tuesday

Akamai Technologies posts earnings beat

U.S. stocks advanced on Tuesday morning after a volatile session on Monday, in which the Dow fluctuated by more than 900 points. The Dow Jones Industrial Average rose more than 245 points, or 1.02%, to 24,694, the S&P 500 index gained 0.98% to 2,667 and the Nasdaq Composite Index advanced 0.90% to 7,113.

Shares of Akamai Technologies Inc. (NASDAQ:AKAM) jumped more than 13% on Tuesday after the company reported third-quarter earnings. The company posted earnings of 94 cents per share on $669.63 million in revenue, reflecting 7.2% year-over-year growth. It beat earnings estimates by 11 cents and revenue expectations by $5.37 million.

By segment, Web Division's revenue grew 8% to $357 million. Media and Carrier Division revenue was $313 million, up 6% year over year. Revenue from Cloud Security Solutions increased 37% to $169 million, but sales in Internet Platform Customers declined 15% to $43 million. Excluding Internet Platform Customers, revenue was was $627 million, up 9% year over year.

By region, sales in the U.S. were consistent at $413 million, while international revenue grew 21% to $257 million.

Adjusted earnings before interest, taxes, depreciation and amortization were $273 million, an 18% increase from the prior-year quarter. The adjusted EBITDA margin was 41%, an increase of 4 percentage points. 

Moreover, the company announced its board of directors has authorized a new $1.1 billion share repurchase program. 



Global markets

In Europe, the U.K.'s FTSE 100 gained 0.14%, France's CAC 40 retreated 0.21%, Germany's Dax dipped 0.30% and Spain's IBEX 35 rose 0.06%.

In Asia, Japan's Nikkei 225 rose 1.45%, India’s BSE Sensex fell 0.52%, Hong Kong's Hang Seng lost 0.91%and China's Shanghai Composite gained 1.02%.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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