Equinix Inc (NASDAQ: EQIX) stock fell over 1.5% on 31st October, 2019 (As of 10:32 am GMT-4 ; Source: Google finance) though the company posted lower than expected results for the third quarter of FY 19. The company has reported the net income of $120.9 million for the third quarter, compared to $124.8 million, a year earlier.
Meanwhile, the company has recently signed an agreement for the acquisition of three Axtel data centers that serve two new strategic technology metros in Mexico for US$175 million to further strengthen Equinix’s global platform by increasing interconnection between North, Central and South America. The company has also recently completed the formation of the greater than US$1.0 billion joint venture in the form of a limited liability partnership with GIC, Singapore’s sovereign wealth fund, for the development and operation of xScale data centers in Europe. The company is strategically investing in organic growth and expansion activities and currently 28 major expansion projects underway across 21 markets and 16 countries. The company has announced for four xScale data centers and four newly announced projects, That includes phased expansions in Chicago and Toronto, and two new builds in Washington, D.C. Further, the company has completed six new phased expansions or openings in the third quarter, including two new International Business Exchange (IBX) data centers in Helsinki and Seoul.
EQIX in the third quarter of FY 19 has reported the adjusted funds from operations per share of $5.52, missing the analysts’ estimates for the adjusted funds from operations per share of $5.87, according to the analysts polled by FactSet. The company had reported the adjusted revenue growth of 9 percent to $1.4 billion in the third quarter of FY 19, slightly missing the analysts’ estimates for revenue of $1.41 billion.
For the fourth quarter of 2019, the Company expects revenues to be in the range of $1.409 and $1.419 billion, Adjusted EBITDA is expected to be in the range of $654 and $664 million and recurring capital expenditures are expected to be in the range of $65 and $75 million.
For the full year of 2019, total revenues are expected to be in the range of $5.554 and $5.564 billion, Adjusted EBITDA is expected to be in the range of $2.666 and $2.676 billion, an adjusted EBITDA margin of 48%, AFFO is expected to be in the range of $1.913 and $1.923 billion and AFFO per share is expected to be in the range of $22.56 – $22.68.