This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Equinix Warning Takes Toll on Competition

NEW YORK ( TheStreet) -- Shares of Equinix (EQIX - Get Report) 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 - Get Report), which fell 8.5% to $23.99 on volume of 157,000, according to Nasdaq.com.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EQIX $268.07 0.00%
RAX $40.09 0.00%
YHOO $42.94 0.00%
AAPL $130.28 0.00%
FB $79.19 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs