Equinix Inc (NASDAQ: EQIX) stock rose over 3.3% on 2nd May, 2019 (as of 5:20 pm GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 19. Global Q1 adjusted EBITDA was $660 million, up 12% over the same quarter last year, mainly on the back of the strong operating performance and lower than planned utilities and repairs and maintenance expense. The company’s Q1 adjusted EBITDA performance net of FX hedges included a $2 million positive FX benefit when compared to the prior guidance range.
EQIX in the first quarter of FY 19 has reported the adjusted funds from operations per share of $5.95, beating the analysts’ estimates for the adjusted funds from operations per share of $5.60, as per analysts surveyed by Zacks Investment Research. Global Q1 AFFO was $488 million, , mainly on the back of the strong operating profit as well as lower net interest expense due to our cross currency swap on a portion of the U.S. denominated debt and a lower cost to borrow on a floating rate debt due to the credit rating increase. The company had reported the adjusted revenue growth of 11 percent to $1.36 billion in the first quarter of FY 19, beating the analysts’ estimates for revenue of $1.35 billion. Nonrecurring revenues were 6% of total revenues, an 11% increase over the prior quarter and reflect the inherent lumpiness of this revenue line.
Moreover, the content digital media vertical produced solid bookings led by strong demand in the social media sub-segment as providers continue to strive to improve user experience and expand the scope of their business models. Our gaming and e-commerce sub-segment grew the fast year-over-year led by customers, including Tencent, neighbor and roadblocks. The cloud and IT vertical also captured strong bookings led by SaaS as the cloud diversifies towards a hybrid multi-cloud architecture. EQIX see a robust pipeline as cloud service providers continue to push to new markets and roll out additional services
EQIX has declared a quarterly cash dividend of $2.46 per share on its common stock. The quarterly common stock dividend will be paid on June 19, 2019, to shareholders of record on May 22, 2019.
For FY 19, EQIX expects full-year funds from operations to be in the range of $22.37 to $22.73 per share, and revenue is expected to be in the range of $5.55 billion to $5.6 billion. Adjusted EBITDA for FY 19 is expected to be in the range of $2.64 – $2.68 billion