By Reuters | Updated: October 31, 2024
Oct 30 (Reuters) – Equinix (EQIX.O) 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.
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@ Thomson Reuters 2024
