Akamai stock jumps after it beat on earnings and said it cut 5 percent of global workforce
- Akamai jumped as much as 8 percent Wednesday.
- Total revenue for the cloud company rose 7.7 percent to $663.5 million.
- Akamai also announced it cut 400 positions, or 5 percent of its global workforce.
Akamai jumped as much as 8 percent Wednesday after reporting earnings that beat Wall Street estimates for the fourth quarter, and announcing a 5 percent cut in its global workforce.
Total revenue for the cloud company rose 7.7 percent to $663.5 million, beating analysts' average estimate of $649.1 million, according to Thomson Reuters consensus estimates. The company reported earnings Tuesday night.
The company's net income was $19.1 million, or 11 cents per share, from $91.6 million, or 52 cents per share, a year earlier, the drop being due to one-time charges including changes to the U.S. tax code.
Excluding those charges, the company earned 69 cents per share, 6 cents above analysts' average estimate.
Akamai also announced it cut 400 positions, or 5 percent of its global workforce.
"As part of our effort to improve operational efficiency, we reduced headcounts in targeted areas of business, most notably in areas tied to our media business," Chief Executive Tom Leighton said on a post-earnings call with analysts.
Activist investor Elliott Management said in December it took a 6.5 percent stake in Akamai and that it would push the company to curtail wasteful spending.
Shares of Akamai are up 2.5 percent year to date.
— Reuters contributed to this report.