Limelight Networks (NASDAQ:LLNW) Soaring on Strong Guidance

One nice thing about being a provider of picks and shovels in a growing sector, is it doesn't matter who ends up winning the battle, the supplier of tools will win either way, as in the case of Limelight Networks (NASDAQ:LLNW).

For example, there is a battle brewing as TV and movie content migrates to a digital delivery model. While Netflix Inc. (NASDAQ:NFLX) could end up losing that battle as larger competitors embrace the digital business model, Limelight Networks should continue growing.

Limelight recently reported revenue of $55.2 million, surpassing analysts' estimates of $50.3 million.

More importantly, the company gave strong guidance for the current quarter, with sales of $48 to $49.5 million. Above the $48.2 million estimate.

Full-year guidance is from 15 to 20 percent, while analysts are looking for 16 percent on average.

Once larger companies start competing on a increased level in digital delivery of content, companies like Limelight Networks Inc. could soar in revenue and earnings.

Limelight was trading at $8.40, gaining $1.94, or 29.95 percent, as of 2:49 PM EST.