EQIX Equinix Inc

   By Micah Maidenberg 
 

Data-center company Equinix Inc. said it may face headwinds tied to the Covid-19 pandemic and slightly lowered parts of its full-year revenue forecast in part because of those risks.

The company said Wednesday it now believes it will generate between $5.88 billion and $5.99 billion in revenue for the year.

Equinix had said earlier it expected to generate $6 billion to $6.05 billion in revenue in 2020.

At the low end of the new outlooks, Equinix said it could face a $50 million revenue headwind tied to the pandemic, according to an investor presentation. At the midpoint, it could take a $25 million hit due to the situation.

The company also lowered the revenue forecast $105 million across all scenarios due to expected negative effects of currency fluctuations, according to an investor presentation.

Equinix reported first-quarter revenues of $1.44 billion, up from $1.36 billion in the year-ago quarter.

It also reported net income of $118.8 million, or $1.38 a share, compared to $118.1 million, or $1.44 a share, in the first quarter of 2019.

Funds from operations, following adjustments, totaled $6.21 a share, 16 cents higher than forecasts from analysts, according to FactSet.

The company also said quarterly traffic on its Peak Equinix Internet Exchange rose 44% year-over-year, "reflecting the impact of the sudden global shift to remote and work-from-home practices."

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

May 06, 2020 18:27 ET (22:27 GMT)

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