Earnings Roundup: Akamai, Infinera, Juniper, Digital Realty

April 29th, 2016 by · Leave a Comment

There was quite a bit of earnings activity this week.  Here's a quick look at how four companies from different corners of the industry did relative to expectations, with one CDN/cloud, two vendors, and a data center REIT:

Akamai managed to beat expectations by a bit this week on the back of cloud security. They posted revenues of $567.7M, up 8% in total while revenues from cloud security rose some 46% over the same period last year. Guidance for revenues and earnings per share for the second quarter straddled analyst hopes, albeit just barely. The stock surged on Wednesday but gave most of it back on Thursday, with the talk being of competition from self built CDNs in the content world.

Infinera also surpassed expectations with earnings per share of $0.17, while coming in slightly light on the top line at $244.8M. It was the Q2 guidance that bothered the market though, with projections of revenue in the $250-260M range and EPS of $0.15-0.19 against consensus estimates of $272M and $0.22. The stock fell 3.5% yesterday as a result, but the company remained upbeat, pointing to some choppiness in the market that will eventually resolve itself.

Juniper Networks had warned a couple weeks ago that its first quarter hadn't gone that well, and thus yesterday's announcement was less dramatic than it might have been. Revenues of $1,097.9M and non-GAAP earnings per share of $0.37 were down dramatically on a sequential basis but still up over the same period last year and at the higher end of the recently lowered guidance. Guidance for Q2 was for revenues of $1,160-1,220M and non-GAAP earnings per share of $0.44-0.50, which mostly reached analyst estimates at the higher end.

And in the data center REIT world, Digital Realty Trust posted some fairly strong numbers. Revenues of $504M and Funds from Operations checked in at $1.39 per share, the latter of which was 7 cents above expectations. The Telx business, which Digital Realty bought last year and is now the company's colocation and interconnection arm, did $92M in revenue with $38M in EBITDA.

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Categories: Content Distribution · Datacenter · Financials · Telecom Equipment

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