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Equinix Q3 revenue and profit top expectations, forecast beats as well

The company continues to run its data centers as an essential facility during the pandemic.
Written by Tiernan Ray, Senior Contributing Writer

Shares of data center operator Equinix were unchanged in late trading after the company this afternoon reported third-quarter revenue and profit that topped analysts' expectations, and forecast this quarter's revenue higher as well.

CEO Charles Meyers said the company's capabilities would provide a unique resource for its customers to "adapt, respond and accelerate their digital transformation – a key driver for economic recovery."

The company's data centers have mostly been designated "essential businesses," Equinix noted in the release. That has meant some staff working in those facilities even though Equinix corporate staff have been working from home. 

Equinix is pursuing a "phased plan" for the return to offices. "The Company has been following this plan to open certain offices with occupancy limits as local conditions allow," it said. 

Equinix said that "the full impact of the COVID-19 pandemic on the Company's financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on Equinix customers, partners and vendors and the impact on, and functioning of, the global financial markets."

Revenue in the three months ended in September rose by almost 9%, year over year, to $1.52 billion, topping consensus for $1.5 billion.

As a real estate investment trust, or REIT, Equinix reports on its funds from operations versus traditional net income per share measures. Funds from operations per share came in at $6.48, beating Wall Street's expectation for $4.40 per share. 

For the current quarter, the company sees revenue in a range of $1.549 billion to $1.569 billion, again, ahead of consensus for $1.55 billion. 

Funds from operations per share for the full year are expected in a range of $24.38 to $24.61, versus consensus for $16.79 per share. 

The company projects Ebitda, or earnings before interest, taxes, deprecation and amortization, this quarter of $685 million to $705 million. That amount reflects "higher repairs and maintenance and utilities expenses and certain COVID-19-related one-off costs," it said.

Equinix shares are unchanged in late trading at $756.07.

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