(Reuters) – Equinix on Wednesday forecast adjusted core earnings for fiscal 2024 above market expectations on signs of strong demand for its data center services as more companies opt for cloud infrastructure.
Shares of the company rose around 2% in extended trading.
The forecast fuels optimism that client spending on data centers is expected to continue throughout 2024 as more companies seek to infuse artificial intelligence technology and automation into their workloads.
Data centers are crucial in supporting AI as the tech requires massive computing power.
Equinix expects fiscal 2024 adjusted core earnings in the range of $4.09 billion to $4.17 billion, compared with analysts’ expectations of $4.05 billion, according to LSEG data.
The company forecast first-quarter revenue in a range of $2.13 billion and $2.15 billion compared with estimates of $2.14 billion.
For the full year, it expects revenue between $8.79 billion and $8.89 billion, slightly below average analysts’ estimate of $8.87 billion.
Revenue for the fourth-quarter came in at $2.11 billion, in line with analysts’ estimates, while adjusted funds from operations – a key measure of cash flow – came in at $7.30 per share, 3% higher than a year earlier.
Adjusted EBITDA for the quarter ended Dec. 31 rose 10% to $920.5 million, compared with estimates of $919.8 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
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