Why Equinix Jumped
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.
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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.