Equinix forecasts quarterly revenue above estimates on steady demand


FILE PHOTO: The logo of Equinix is pictured at the entrance of a data center in Pantin, outside Paris, France, December 7, 2016. REUTERS/Benoit Tessier/File Photo

(Reuters) - Equinix forecast fourth-quarter revenue above Wall Street estimates on Wednesday, driven by steady demand for its data center services amid the continuing surge in artificial intelligence boom.

Enterprise clients depend on data center services from companies such as Equinix to expand their digitization initiatives.

Data centers are crucial in supporting AI, as the technology requires massive computing power.

"We see continued robust demand for AI-enabling digital infrastructure from a highly diverse set of customers of varying sizes, industries, and regions," CEO Adaire Fox-Martin said in a statement.

Equinix expects fourth-quarter revenue to be between $2.26 billion and $2.30 billion, the midpoint of which is slightly above analysts' average estimate of $2.26 billion, according to data compiled by LSEG.

It expects adjusted core earnings in the range of $1.01 billion to $1.05 billion in the fourth quarter, compared with estimates of $1.04 billion.

The company also raised its annual revenue and adjusted funds from operations forecasts.

In the three months ended Sept. 30, Equinix's revenue rose 2% to $2.20 billion, in line with analysts' estimates.

Adjusted funds from operations, which is a key measure of cash flow, came in at $9.05 per share in the third quarter, beating estimates of $8.49 per share.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Australia sues Optus for 'misconduct' in phone sales to vulnerable customers
Nightmare fuel: We asked researchers to name the scariest thing you should worry about
Meta, Microsoft lift AI spending, worrying Wall Street ahead of Amazon results
US election deniers use Telegram to rally poll watchers in swing states
Cognizant beats quarterly profit estimates on gradual recovery in IT services demand
Samsung to focus on high-end chips to improve earnings after disappointing results
What does an IP69 rating mean for an 'all-weather' smartphone?
Siemens to buy engineering software firm Altair in $10.6 billion deal
Coinbase posts third-quarter profit on trading strength
Meta projects sharp acceleration in AI costs after results beat Wall Street targets

Others Also Read