WRAPUP 1-McAfee, Akamai beat forecast;Harry Potter delay zaps EA

viernes 31 de octubre de 2008 03:51 CET
 

* McAfee Q3 EPS of 53 cents beats estimates by 4 cents

* Akamai Q3 adjusted EPS $0.40 tops Wall St forecast $0.39

* Electronic Arts cuts profit outlook, shares fall 14 pct

By Jim Finkle

BOSTON, Oct 30 (Reuters) - McAfee Inc MFE.N and Akamai Technologies Inc (AKAM.O: Cotización) posted upbeat results as the two tech companies that sell software products via subscription benefited from recurring revenue streams.

But Electronic Arts Inc ERTS.O said a delay in releasing the latest "Harry Potter" video game until after Christmas meant the company won't meet its full-year profit forecast.

Akamai shares rose 12 percent and Electronic Arts fell 14 percent in after hours trade. McAfee was little changed.

The reports from McAfee and Akamai compared with a string of negative earnings releases earlier in the earning season as executives have either warned that their business is slowing along with the economy or that the outlook is so uncertain they simply cannot issue a forecast for the rest of the year.

"People forget that McAfee and Akamai are not dependent on day-to-day spending. There is sustainability in the earnings of both of these companies," said Jefferies and Co. analyst Katherine Egbert. "Most of their revenue is recurring."   Continuación...