Why Equinix Inc (NASDAQ: EQIX) stock is under pressure

Free $100 Forex No-Deposit Bonus

Equinix Inc (NASDAQ: EQIX) stock fell over 2.2% on 7th May, 2020 (as of 12:26 pm GMT-4; Source: Google finance) after the company posted mixed results for the first quarter of FY 20. Interconnection revenues in the first quarter grew 14% over the same quarter last year, or 15% on a normalized and constant currency basis, which represents a sustainable and steady increase over the past few quarters. Peak Equinix Internet Exchange traffic grew by 44% over the same quarter last year, or over 20% compared to the prior quarter, due to the sudden global shift to remote and work-from-home practices. The company has reported 5% fall in the net income to $119 million from the previous quarter. AFFO in the first quarter was of $535 million, a 13% increase over the previous quarter and AFFO per Share was of $6.21 per share, which is a 13% increase over the previous quarter

EQIX in the first quarter of FY 20 has reported the adjusted funds from operations (FFO) per share of $6.21, beating the analysts’ estimates for the adjusted earnings per share of $5.98, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6 percent to $1.44 billion in the first quarter of FY 20, missing the analysts’ estimates for revenue by 0.44%. The company posted the Operating Income of $253 million for the first quarter, which is a 19% decline from the previous quarter, mainly on the back of the sale of certain assets in Q4 to the EMEA xScale joint venture, and an operating margin of 18%. The company delivered the Adjusted EBITDA of $684 million for the first quarter, which represents a 47% adjusted EBITDA margin, including higher seasonal costs.

For fiscal 2020, the company expects the revenues to be in the range of $5.877 – $5.985 billion, a 6 – 8% increase over the previous year, or a normalized and constant currency increase of 7 – 9%. 2020 adjusted EBITDA is expected to be in the range of $2.765 – $2.845 billion, which reflects a 47% adjusted EBITDA margin. For fiscal 2020, AFFO is expected to be $2.043 – $2.133 billion, which represents an increase of 6 – 10% over the previous year, or a normalized and constant currency increase of 11 – 16% and AFFO per share is expected to be $23.62 – $24.66 per share, an increase of 4 – 8% over the previous year, or a normalized and constant currency increase of 8 – 12%.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.