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Equinix to Post Q3 Earnings: What's in Store for the Stock?
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Equinix, Inc. (EQIX - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30 after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues and adjusted funds from operations (FFO) per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported a surprise of 4.5% in terms of AFFO per share. Its quarterly results reflected steady growth in colocation and inter-connection revenues due to strong demand for digital infrastructure.
Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on all occasions, the average beat being 3.4%. This is depicted in the graph below:
There is growing reliance on technology and acceleration in digital transformation strategies by enterprises that call for data exchanges. To meet this global need, Equinix is expanding its International Business Exchanges data centers globally and is gaining traction among tech companies looking for data management.
Equinix is expected to have continued with its asset-based expansion during the quarter through acquisitions and development activities. Its robust balance sheet position is likely to have enabled it to capitalize on long-term growth opportunities.
The company’s recurring revenue model, which comprises colocation, related interconnection and managed IT infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line. Also, solid demand for Equinix’s interconnected ecosystem in the to-be-reported quarter is likely to have given it an edge.
Projections for EQIX
The Zacks Consensus Estimate for colocation revenues is pegged at $1.53 billion, suggesting growth of 4.6% from $1.46 billion in the prior-year period. The consensus mark for interconnection revenues is pegged at $381 million, indicating growth of 7.9% from $353 million in the prior-year period.
For the third quarter of 2024, Equinix projected revenues between $2.19 billion and $2.21 billion. The Zacks Consensus Estimate stands at $2.20 billion, calling for a rise of 6.8% from the year-ago period’s reported figure.
EQIX estimated adjusted EBITDA in the range of $1.03-$1.05 billion for the third quarter. Our estimate is pegged at $1.04 billion, implying a year-over-year increase of 11.5%.
However, high interest rates might have partly impeded the company’s quarterly performance. For the third quarter of 2024, our estimate for interest expenses implies a year-over-year increase of 6.1%.
EQIX’s activities during the to-be-reported were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been revised northward marginally to $8.70 over the past month. It suggests a 6.2% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts for EQIX
Our proven model predicts a surprise in terms of FFO per share for Equinix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Equinix currently has an Earnings ESP of +0.03% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — Public Storage (PSA - Free Report) and Extra Space Storage (EXR - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Extra Space Storage is slated to report quarterly numbers on Oct. 29. EXR has an Earnings ESP of +0.67% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Equinix to Post Q3 Earnings: What's in Store for the Stock?
Equinix, Inc. (EQIX - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30 after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues and adjusted funds from operations (FFO) per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported a surprise of 4.5% in terms of AFFO per share. Its quarterly results reflected steady growth in colocation and inter-connection revenues due to strong demand for digital infrastructure.
Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on all occasions, the average beat being 3.4%. This is depicted in the graph below:
Equinix, Inc. Price and EPS Surprise
Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote
Factors at Play for Equinix
There is growing reliance on technology and acceleration in digital transformation strategies by enterprises that call for data exchanges. To meet this global need, Equinix is expanding its International Business Exchanges data centers globally and is gaining traction among tech companies looking for data management.
Equinix is expected to have continued with its asset-based expansion during the quarter through acquisitions and development activities. Its robust balance sheet position is likely to have enabled it to capitalize on long-term growth opportunities.
The company’s recurring revenue model, which comprises colocation, related interconnection and managed IT infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line. Also, solid demand for Equinix’s interconnected ecosystem in the to-be-reported quarter is likely to have given it an edge.
Projections for EQIX
The Zacks Consensus Estimate for colocation revenues is pegged at $1.53 billion, suggesting growth of 4.6% from $1.46 billion in the prior-year period. The consensus mark for interconnection revenues is pegged at $381 million, indicating growth of 7.9% from $353 million in the prior-year period.
For the third quarter of 2024, Equinix projected revenues between $2.19 billion and $2.21 billion. The Zacks Consensus Estimate stands at $2.20 billion, calling for a rise of 6.8% from the year-ago period’s reported figure.
EQIX estimated adjusted EBITDA in the range of $1.03-$1.05 billion for the third quarter. Our estimate is pegged at $1.04 billion, implying a year-over-year increase of 11.5%.
However, high interest rates might have partly impeded the company’s quarterly performance. For the third quarter of 2024, our estimate for interest expenses implies a year-over-year increase of 6.1%.
EQIX’s activities during the to-be-reported were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been revised northward marginally to $8.70 over the past month. It suggests a 6.2% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts for EQIX
Our proven model predicts a surprise in terms of FFO per share for Equinix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Equinix currently has an Earnings ESP of +0.03% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — Public Storage (PSA - Free Report) and Extra Space Storage (EXR - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Public Storage, scheduled to report quarterly numbers on Oct. 30, has an Earnings ESP of +0.26% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage is slated to report quarterly numbers on Oct. 29. EXR has an Earnings ESP of +0.67% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.