Akamai Technologies Inc, whose service improves the performance of websites, posted third-quarter earnings that were a cent ahead of Wall Street estimates and forecast fourth quarter in line with expectations.
Akamai shares were up 12 percent to $26.69 in after-hours trading. The stock closed up 2 percent to $23.78 Wednesday on the Nasdaq stock market.
Continue Reading Below
Akamai, which runs the internet infrastructure used by companies to operate their online traffic, forecast fourth-quarter adjusted earnings of 37 cents to 41 cents, on revenue of between $303 million to $315 million.
Analysts were expecting earnings of 39 cents a share, excluding items, on revenue of $310.5 million, according to Reuters Estimates.
``So far its (the macroeconomic environment) held well for us. I think it sets us up well for Q4,'' Chief Executive Paul Sagan told Reuters.
Sagan sees value added solutions to make applications in cloud computing work effectively as the biggest opportunity ahead of the company.
IT research firm Forrester has forecast the global cloud computing market to grow to $241 billion in 2020 from $41 billion this year.
Akamai's enterprise segment, grew 30 percent year-over-year and its ecommerce segment rose 23 percent.
The company said net income rose to $42.3 million, or 23 cents per share, from $39.7 million, or 21 cents per share a year ago. Revenue rose 11 percent to $281.9 million.
Excluding items, the company earned 34 cents a share.
Analysts were expecting a profit of 33 cents a share on average, excluding items, on revenue of $278.9 million, according to Thomson Reuters I/B/E/S.