Why Equinix Jumped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Equinix (NAS: EQIX) have jumped today by upward of 14% after the company reported second-quarter earnings with better-than-expected profits.

So what: Revenue rose 18% over last year to $466.3 million, with earnings of $0.73 per share. The top line actually fell short of estimates, but the bottom line beat more than made up for it, since the market would have settled for just $0.60 per share in profit.


Now what: Equinix continues to grow its data center optimization business with the vast majority of its sales coming from recurring revenue sources. The company also provided upbeat outlook, expecting third-quarter revenue of $492 million to $498 million, topping the Street consensus of $485.2 million in the coming quarter. Full-year revenue was also increased and is now expected to be more than $1.92 billion.

Interested in more info on Equinix? Add it to your watchlist byclicking here.

The article Why Equinix Jumped originally appeared on Fool.com.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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