S&P 500 cuts losses as Nvidia climbs ahead of results
Investing.com -- Digital Realty Trust Inc (NYSE:DLR), the largest global provider of data center solutions, reported second-quarter earnings that significantly beat analyst expectations, but shares fell 1.1% following weak full-year guidance.
The data center operator reported second-quarter earnings per share of $2.94, substantially exceeding the analyst estimate of $0.41. Revenue came in at $1.49 billion, above the consensus estimate of $1.44 billion and representing a 10% increase YoY. Despite these strong results, investors focused on the company’s underwhelming full-year outlook.
Digital Realty raised its 2025 Core FFO per share outlook to $7.15-$7.25 and its Constant-Currency Core FFO per share outlook to $7.10-$7.20. However, the company’s full-year EPS guidance of $2.10-$2.20 falls well below the analyst consensus of $3.02, contributing to the negative market reaction.
"Record bookings in our 0–1 megawatt plus interconnection product set underscore the strength of our full spectrum strategy and the breadth of the growing demand for digital infrastructure," said Digital Realty President and CEO Andy Power.
The company reported strong leasing activity, signing total bookings expected to generate $135 million of annualized GAAP rental revenue at its share. Rental rates on renewal leases increased 7.3% on a cash basis and 9.9% on a GAAP basis during the quarter.
Digital Realty’s balance sheet showed approximately $18.5 billion of total debt outstanding as of June 30, with net debt-to-Adjusted EBITDA at 5.1x. The company also reported progress on its U.S. Hyperscale Data Center Fund, with total commitments exceeding $3 billion.
For the full year, Digital Realty now expects revenue between $5.925-$6.025 billion, slightly above the consensus estimate of $5.89 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.