NEW YORK (TheStreet) -- Shares of Equinix (EQIX) suffered the biggest percentage decline in extended trading on Tuesday after the Foster City, Calif.-based provider of global data center services lowered its revenue outlook for the third quarter and full year.
The company cited deeper discounting than expected on long-term contract renewals, its underestimation of churn levels in North America, revenue weakness for a switch and data business it acquired in April.
Equinix now sees revenue of $328 million to $335 million for the September period, compared to its prior range of $335 million to $338 million. Wall Street's current consensus estimate is for revenue of $336.8 million for the period. In the full year, the company expects revenue of $1.215 billion vs. a previous projection of $1.225 billion to $1.235 billion.
The stock was crushed after the close, falling 26% to $78.23. Volume of 4.1 million was more than five times the issue's trailing three-month daily average of around 790,000. The shares had finished the regular session at $105.99, up 4%. Year-to-date, not reflecting the sell-off after the close, the stock was down almost 5%, but it had rallied 40% since scraping a 52-week low of $76.29 on July 7.Equinix, which boosted its adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] outlook at the same time, is expected to report its full results for the third quarter on Oct. 26. On a bottomline basis, Wall Street is expecting a profit of 24 cents a share. The news on Equinix was weighing on shares of its competitors after the bell, including Savvis Inc. (SVVS), whose stock lost nearly 10% to $19.51 on volume of roughly 214,000; Terremark Worldwide (TMRK), which was quoted down 8% at $9.34 on volume of around 20,000; and Rackspace Hosting (RAX), which fell 8.5% to $23.99 on volume of 157,000, according to Nasdaq.com.
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