Technology firm Equinix, Inc.'s (EQIX) shares surged nearly 10 percent in after-hours trading on Wednesday after the company reported higher profit and revenue for the quarter that exceeded Wall Street estimates. The company also raised its full year revenue forecast.
Steve Smith, president and CEO of Equinix , said, "Our strong first quarter results reflect growth in all three regions, which is being propelled by strong secular trends in mobility, cloud computing and data management, leaving us well positioned to achieve our 2012 objectives."
The company provides data center services to protect and connect information assets for enterprises, financial services companies and content and network providers.
Net income for the quarter increased to $34.52 million or $0.71 per share from $25.15 million or $0.53 per share in the year-ago period. On average, 23 analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues climbed 25 percent to $452.20 million from $363.03 million a year ago. Analysts expected revenues of $444.99 million.
Recurring revenues, consisting mainly of colocation, interconnection and managed services, also increased 25 percent to $429.6 million.
Gross margins improved to 50 percent from 46 percent for the same quarter last year and 47 percent for the previous quarter .
Looking forward to the second quarter, the company expects revenues in the range of $466.0 to $468.0 million. Analysts currently expect revenue of $463.32 million for the second quarter.
For the full year 2012, total revenues are expected to exceed $1.8 billion. In February, the company expected to generate revenues of greater than $1.87 billion. Analysts currently expect revenues of $1.89 billion for the full year 2012.
EQIX, which closed higher at $149.47 on Wednesday, surged nearly 10 percent in trading after the bell to reach $164.26. The stock has been trading in the range of $80.85 - $161.56 for the past year.
by RTT Staff Writer
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