REDWOOD CITY, Calif. (AP) — Equinix Inc. shares climbed 9 percent Thursday after the data center operator reported second-quarter earnings that beat Wall Street’s estimates.
THE EARNINGS: Late Wednesday, Equinix reported net income of $30.7 million, or 64 cents per share, on $394.9 million in revenue for the three months ended June 30. That compares with a loss of $2.3 million, or 5 cents per share, on $296.1 million in revenue for the same period a year earlier.
Wall Street on average had expected Equinix to earn 48 cents per share on $380.5 million in revenue for the latest period, according to a survey of analysts polled by FactSet.
THE OUTLOOK: Equinix said it expects revenue of $412 million to $417 million for its fiscal third quarter, and revenue above $1.59 billion for the full year. Chief Executive Steve Smith said the company is benefiting from the growth of Internet traffic, mobile services, online video, cloud computing and electronic trading. William Blair analysts Jim Breen, Louie DiPalma and Erik Rayner said Equinix is seeing solid demand and stable pricing for its services.
THE ANALYSIS: Collins Stewart analysts Greg Miller and Eric Chu said the strong second quarter results “will go a long way to erasing the memory” of Equinix’s revenue shortfall in the second half of last year. The company’s shares sank 33 percent in one day last October when it lowered its 2010 third-quarter and full-year revenue outlook.
SHARE ACTION: Equinix’s shares were up $8.81 at $106.09 in late trading Thursday.