Equinix shares jump on higher 1Q profit, revenue
Equinix says profit grew 37 pct. on stronger revenue, beats Wall Street views
REDWOOD CITY, Calif. (AP) -- Shares of Equinix Inc. jumped more than 7 percent in after-hours trading Wednesday after the data center operator reported earnings and revenue above Wall Street's expectations.
Equinix reported first-quarter net income climbed 37 percent to $34.5 million, or 71 cents a share. That compares with net income of $25.1 million, or 53 cents a share, for the same period last year.
Revenue grew 25 percent to $452.2 million from $363 million a year ago.
Analysts had forecast, on average, earnings of 49 cents a share on revenue of $445.1 million, according to FactSet.
The sharp rise in revenue helped blunt a 30 percent increase in selling, general and administrative expenses.
Management attributed its first-quarter results on strong growth trends in mobility, cloud computing and data management.
Equinix forecast second-quarter revenue of $466 million to $468 million. Analysts estimate revenue at $463.9 million.
For 2012, the company expects revenue will top $1.89 billion, in line with analysts' consensus forecast.
Meanwhile, Equinix said it plans to build a new data center in Boca Raton, Fla. It is scheduled to open in the fourth quarter.
Equinix shares gained $10.62, or 7.1 percent, to $160.09 in extended trading following the release of the company's financial results. The stock ended the regular session up $1.77 at $149.47.
