Business Corpus: Akamai Stock Jumps As Earnings Beat On Security Business GrowthAkamai Technologies reported Q3 earnings and revenue that topped expectations as its security business shined. Akamai stock popped as December quarter guidance topped analyst estimates The post Akamai Stock Jumps As Earnings Beat On Security Business Growth appeared first on Investor's Business Daily.

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Akamai Technologies (AKAM) shares surged Tuesday on third-quarter results that topped expectations and a new $1.1 billion stock buyback program. Akamai's December quarter guidance also beat analyst estimates.

Akamai stock jumped 14.2% to 70.85 in mid-morning trading on the stock market today.

Cambridge, Mass.-based Akamai is the biggest provider of content delivery network, or CDN, services. CDN services increase the speed of e-commerce transactions, business software downloads and video streaming to mobile devices. With prices for CDN services continuing to fall, Akamai has expanded into higher-margin security products.

"We believe Akamai is doing a good job of holding its CDN/media revenue flat while allowing its security business to blossom," said Mark Kelleher, analyst at D.A. Davidson in a report. "As security increases from its current 25% of total revenue, overall revenue growth should accelerate."

Late Monday, the company said the Akamai stock repurchase program will run through the end of 2021. There is $124 million left on the current Akamai stock buyback program.

Akamai also reported Monday that adjusted earnings were 94 cents, up 47% from a year ago, with revenue rising 7% to $670 million, ahead of analyst views. A year earlier, Akamai earned 62 cents a share on sales of $621.4 million.

Analysts expected Akamai to report earnings of 83 cents on sales of $664.2 million for the period ended Sept. 30.

Security Business A Bright Spot

Security revenue jumped 39% to $169 million from a year earlier. Web revenue climbed 9% to $357 million, slightly below estimates of $360 million.

"Strength was driven by a sharp acceleration in the company's cloud security solutions and higher-than-anticipated media traffic volumes," William Blair analyst Jim Breen said in a note to clients.

In the December quarter, Akamai said it expects profit in a range of 97 cents to $1.03. Analysts had projected earnings of 90 cents a share.

Akamai forecast revenue to a range pf $692 million to $708 million. Analysts had estimated $703 million.

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The post Akamai Stock Jumps As Earnings Beat On Security Business Growth appeared first on Investor's Business Daily.