Equinix -3.9% amid falling Q4 FFO, Infomart Dallas deal

|By:, SA News Editor

Equinix (NASDAQ:EQIX) is 3.9% lower after hours after its Q4 report, marked by a drop in FFO and a major deal for a giant information hub.

Funds from operations fell to $285.6M from $286.1M; adjusted funds from operations dropped to $381.5M from $391.3M.

Adjusted EBITDA rose to $564.8M from $550.3M, but missed an expected $569.9M.

The company is buying Infomart Dallas -- one of the biggest interconnection hubs in the country -- in a deal valued at $800M from ASB Real Estate Investments. Equinix has four of its eight Dallas-area IBX centers at Infomart.

For Q1, it's guiding to revenues of $1.204B-$1.212B (below consensus for $1.223B) and EBITDA of $549M-$557M (light of consensus for $578.8M). For the full year, it's forecasting adjusted funds from operations of $1.635B (14% gain Y/Y), revenues of more than $5.01B (consensus is for $5.08B), a 15% Y/Y gain, and EBITDA exceeding $2.385B (vs. consensus for $2.45B).

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