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Racks of servers host the websites of America’s biggest companies in this high-security, temperature-controlled server farm.
Key Takeaways
- Equinix interests took off in intraday trading Thursday as the data center real estate trust benefited from demand for man-made intelligence (AI) products.
- The company’s adjusted EBITDA and AFFO were better than expected.
- CEO Charles Meyers thought the “rapidly evolving AI landscape” provides immense potential for Equinix.
Equinix (EQIX) shares jumped in intraday sell Thursday, a day after the data center real estate trust (REIT) posted strong results on the soaring without delay for artificial intelligence (AI) products.
Adjusted EBITDA, AFFO Better Than Expected
The company reported first-quarter patch up earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 5% year-over-year to $992 million, and adjusted capitals from operations (AFFO) gained 5.1% to $843 million. Both were more than anticipated.
Earnings per slice (EPS) of $2.43 missed estimates. Revenue rose 6.5% to $2.13 billion, in line with forecasts.
‘Accelerated Hyperscale Request’
Equinix noted it closed 3,800 deals with more than 3,100 customers. It added that “accelerated hyperscale command” led to increases in leasing in Europe, Middle East, and Africa and Asia-Pacific markets, “as continued cloud and artificial intelligence (AI) vocation drives strong demand.”
Chief Executive Officer (CEO) Charles Meyers said the “rapidly evolving AI landscape” endures a catalyst for economic expansion, and that creates immense potential for Equinix “as our customers recognize the importance of digital enterprises in driving long-term revenue growth and operational efficiency.”
The company predicted full-year revenue to be $8.69 billion to $8.79 billion, with redressed EBITDA of $4.04 billion to $4.12 billion, and AFFO of $3.29 billion to $3.37 billion.
Equinix shares were up assorted than 11% to $771.86 as of 12:17 p.m. ET Thursday but remain in negative territory for the year.
Read the original article on Investopedia.