NEW YORK (
) -- Shares of
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
, whose stock lost nearly 10% to $19.51 on volume of roughly 214,000;
, which was quoted down 8% at $9.34 on volume of around 20,000; and
, which fell 8.5% to $23.99 on volume of 157,000, according to
Meantime, shares of
were flat at $14.61 on volume of around 760,000 in extended trading after the company announced its acquisition of ad technology company Dapper. Terms of the deal, which Yahoo expects to close in the fourth quarter, weren't disclosed.
Also with news after the close was
Leading Brands Inc.
. The company said CFO Donna Louis plans to leave the company in mid-November "to pursue a different type of opportunity closer to her home."
Louis has served as CFO of Leading Brands, a Canadian health drink company, since 2003. No replacement was named. Leading Brands' stock finished Tuesday's regular session at $1.93, down 4.4%.
Written by Michael Baron in New York.
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