Equinix reports 3.2% Y/Y decrease in net income in Q3 2019
The net income in the quarter to end-September 2019 was $120.8 million, down from $124.8 million a year earlier.
Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) has posted its financial metrics for the quarter to end-September 2019, with the data showing a drop in net income and a rise in revenues.
Net income for the third quarter of 2019 was approximately $120.8 million, down 3.2% from the same quarter a year earlier and down about 16% from the $143.85 million in net income registered in the second quarter of 2019. This includes a $16 million increased income tax expense attributable to FX hedge gains.
Quarterly revenues increased 9% year-over-year to $1.397 billion, which includes $8 million of negative foreign currency impact when compared to prior guidance rates. This reflects an 8% year-over-year increase on a normalized and constant currency basis. The result was 1% higher than in the previous quarter.
Adjusted EBITDA for the third quarter of 2019 was $675 million, with a 48% adjusted EBITDA margin. This includes $4 million of negative foreign currency impact when compared to prior guidance rates.
In terms of outlook for the fourth quarter of 2019, the company expects revenues to range between $1.409 and $1.419 billion, an increase of 1% quarter-over-quarter, or a normalized and constant currency increase of approximately 2%. This guidance includes a negative foreign currency impact of $7 million when compared to the average FX rates in the third quarter 2019. Adjusted EBITDA is expected to range between $654 and $664 million, including the impact of timing of spend, a $3 million negative foreign currency impact when compared to the average FX rates in the third quarter 2019 and $3 million of integration costs from acquisitions. Recurring capital expenditures are expected to range between $65 and $75 million.
For the full year of 2019, Equinix forecasts total revenues to range between $5.554 and $5.564 billion, a 10% increase over the previous year, or a normalized and constant currency increase of 9% at the mid-point. This updated guidance maintains prior full year revenue guidance, offset by a negative foreign currency impact of $21 million when compared to prior guidance rates.
Adjusted EBITDA for the full year is expected to range between $2.666 and $2.676 billion, an adjusted EBITDA margin of 48%. This updated guidance raises full year adjusted EBITDA by $6 million, offset by a negative foreign currency impact of $10 million when compared to prior guidance rates, and includes an expected $9 million of integration costs.
