Redwood City (California): Equinix is forecasting adjusted core earnings for fiscal 2024 above market expectations on signs of strong demand for its data-centre services as more companies opt for cloud infrastructure.
Shares of the company rose around 2% in extended trading on Wednesday.
The forecast fuels optimism that client spending on data centres is expected to continue throughout 2024 as more companies seek to infuse artificial intelligence (AI) technology and automation into their workloads.
Data centres are crucial in supporting AI as the tech requires massive computing power.
Equinix expects fiscal 2024 adjusted core earnings in the range of US$4.09bil-US$4.17bil, compared with analysts’ expectations of US$4.05bil, according to LSEG data.
The company forecast first-quarter revenue in a range of US$2.13bil to US$2.15bil compared with estimates of US$2.14bil.
For the full year, it expects revenue between US$8.79bil and US$8.89bil, slightly below average analysts’ estimate of US$8.87bil.
Revenue for the fourth quarter came in at US$2.11bil, in line with analysts’ estimates, while adjusted funds from operations – a key measure of cash flow – came in at US$7.30 per share, 3% higher than a year earlier. — Reuters