Equinix reports 3Q profit, stock jumps

Equinix returns to profit in 3rd quarter on higher demand for services, stock up after hours

Associated Press

REDWOOD CITY, Calif. (AP) -- NEWS: Equinix Inc., a data center operator, said Wednesday it swung to a third quarter profit helped by higher demand for its services. Its results topped estimates and its stock almost 7 percent in after-hours trading.

DETAILS: Equinix said revenue was hurt by the lengthening of a period when non-recurring installation fees are recognized. The company is considering whether or not to apply the non-recurring estimate fee change to earlier periods and should decide by Sept. 30, when it is filing its earnings with the SEC. A potential adjustment would change the revenue of affected periods by less than 1 percent.

NUMBERS: Net income for the three months ended Sept. 30 after paying preferred dividends totaled $36.6 million, or 72 cents per share. That compares with a loss of $28.7 million, or 58 cents per share, a year ago. Revenue rose 3 percent to $540.5 million. Analysts expected 58 cents per share in the latest quarter on revenue of $539.5 million, according to FactSet.

FUTURE: The company expects fourth-quarter revenue of $559 million to $563 million and full year revenue of $2.145 billion to $2.149 billion. Analysts expect revenue of $556.3 million for the fourth quarter and $2.14 billion for the full year.

STOCK: Shares rose $11.35 to $180 during aftermarket trading. The stock closed up $1.65 at $168.65. The stock is down 18 percent since the beginning of the year.

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