(Reuters) -Equinix raises annual results forecast on Wednesday, signaling robust demand for its data center services, sending its shares up 3% after the bell. The U.S. digital infrastructure company benefited from steady spending by hyperscalers who rent data centers and other services. Smaller enterprises have been showing momentum in spending across industries that depend on […]
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Equinix raises annual revenue, FFO forecasts on robust demand
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(Reuters) -Equinix raises annual results forecast on Wednesday, signaling robust demand for its data center services, sending its shares up 3% after the bell.
The U.S. digital infrastructure company benefited from steady spending by hyperscalers who rent data centers and other services.
Smaller enterprises have been showing momentum in spending across industries that depend on data center services to expand their digitization initiatives, hyping demand for companies like Equinix.
The company now expects full-year revenue between $9.175 billion and $9.275 billion, compared to its previous forecast of $9.033 billion to $9.133 billion.
Demand for its digital infrastructure and services remains robust with customer momentum across a full breadth of geographies, industries, segments and products prompting it to raise its forecast, Equinix said.
The company now sees annual per-share funds from operations, a key measure of cash flow, of $37.36 to $38.17. It earlier expected FFO to be between $36.69 and $37.51 per share.
For the first quarter, Equinix reported revenue of $2.23 billion, slightly above the analysts’ average estimate of $2.22 billion, according to data compiled by LSEG.
(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona)