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What's in Store for Equinix (EQIX) This Earnings Season?
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Equinix, Inc. (EQIX - Free Report) will report fourth-quarter and 2021 results on Feb 16, after market close. EQIX’s quarterly results will likely reflect growth in revenues and funds from operations (FFO) per share.
In the previous quarter, Equinix delivered a surprise of 3.74% in terms of adjusted FFO per share. The results displayed steady growth in interconnection revenues.
Over the last four quarters, Equinix’s bottom lineoutpaced the Zacks Consensus Estimate on all occasions, the average being 3.82%.
Let’s see how things have shaped up prior to the earnings announcement.
Factors at Play
Equinix enjoys a geographically-diversified portfolio. EQIX is well poised to benefit from a robust digital footprint of International Business Exchanges (IBX) data centers.
In October, EQIX announced plans to build a new IBX data center in the Agecroft Commerce Park in Manchester. To bank on robust growth in 5G network, Equinix partnered with DISH in November.
High growth in cloud computing, the Internet of Things and big data, and elevated demand for third-party IT infrastructure are spurring demand for data-center infrastructure. Moreover, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets has been creating solid demand for data centers for a while. Amid these, demand for the data-center space is likely to have been healthy during fourth-quarter 2021.
Rising cloud adoption is expected to have helped Equinix continue capturing demand and grow its interconnected ecosystems during the fourth quarter. The Zacks Consensus Estimate for interconnection revenues is pegged at $299 million, suggesting 2.7% growth from the prior-year period’s reported figure.
The consensus estimate for revenues is pegged at $1.7 billion, suggesting an 8.5% improvement from the year-earlier quarter’s actuals.
Equinix projects revenues in the range of $1.685 and $1.705 billion, calling for 1-2% growth, quarter over quarter. The adjusted EBITDA is likely to be between $762 million and $782 million.
Equinix is steadily strengthening its portfolio on the back of acquisitions and development. In December 2021, EQIX announced its plan to tap the growing African market with the takeover of MainOne. EQIX’s efforts to bolster its presence in Africa will add scale and strengthen its position in the region, while helping it benefit from sturdy growth of data consumption.
During the quarter, Equinix also announced a multi-year partnership with Nasdaq. This extended alliance reflects buoyant demand for EQIX’s data-center infrastructure amid robust growth in cloud computing.
However, huge capital outlays required for expansion moves and stiff competition from carrier-neutral data centers act as deterrents for Equinix.
Prior to the fourth-quarter earnings release, the Zacks Consensus Estimate for the quarterly FFO per share has been unrevised at $6.27 in the past month. However, the same suggests 8.9% growth from the prior-year period’s reading.
For the full year, the Zacks Consensus Estimate for FFO per share has been stable at $27.2 over the past month. However, the figure indicates a 9.9% increase from the prior-year period’s actuals while the consensus mark for revenues which stands at $6.63 billion marks a year over year growth of 10.5%.
For the ongoing year, management predicted that the adjusted FFO per share is estimated to be $27.03-$27.25, suggesting a 9-10% year-over-year increase.
Further, Equinix estimated to generate revenues of $6.614-$6.634 billion, indicating growth of 10-11% on a year-over-year basis. Assuming the integration costs of $18 million, management predicted adjusted EBITDA of $3.119-$3.139 billion.
What the Zacks Model Unveils
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for EQIX this season. Equinix does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an FFO beat this time around.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Equinix has an Earnings ESP of 0.00%
Some stocks worth considering from the REIT sector are Host Hotels & Resorts (HST - Free Report) , Life Storage and National Storage Affiliates Trust (NSA - Free Report) . Our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Host Hotels & Resorts, slated to release fourth-quarter earnings on Feb 16, has an Earnings ESP of +61.38% and a Zacks Rank #3 at present.
Life Storage, scheduled to report quarterly figures on Feb 24, has an Earnings ESP of +0.66% and a Zacks Rank of 3, currently.
National Storage Affiliates, slated to release fourth-quarter earnings on Feb 22, has an Earnings ESP of +1.06% and a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What's in Store for Equinix (EQIX) This Earnings Season?
Equinix, Inc. (EQIX - Free Report) will report fourth-quarter and 2021 results on Feb 16, after market close. EQIX’s quarterly results will likely reflect growth in revenues and funds from operations (FFO) per share.
In the previous quarter, Equinix delivered a surprise of 3.74% in terms of adjusted FFO per share. The results displayed steady growth in interconnection revenues.
Over the last four quarters, Equinix’s bottom lineoutpaced the Zacks Consensus Estimate on all occasions, the average being 3.82%.
Equinix, Inc. Price and EPS Surprise
Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote
Let’s see how things have shaped up prior to the earnings announcement.
Factors at Play
Equinix enjoys a geographically-diversified portfolio. EQIX is well poised to benefit from a robust digital footprint of International Business Exchanges (IBX) data centers.
In October, EQIX announced plans to build a new IBX data center in the Agecroft Commerce Park in Manchester. To bank on robust growth in 5G network, Equinix partnered with DISH in November.
High growth in cloud computing, the Internet of Things and big data, and elevated demand for third-party IT infrastructure are spurring demand for data-center infrastructure. Moreover, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets has been creating solid demand for data centers for a while. Amid these, demand for the data-center space is likely to have been healthy during fourth-quarter 2021.
Rising cloud adoption is expected to have helped Equinix continue capturing demand and grow its interconnected ecosystems during the fourth quarter. The Zacks Consensus Estimate for interconnection revenues is pegged at $299 million, suggesting 2.7% growth from the prior-year period’s reported figure.
The consensus estimate for revenues is pegged at $1.7 billion, suggesting an 8.5% improvement from the year-earlier quarter’s actuals.
Equinix projects revenues in the range of $1.685 and $1.705 billion, calling for 1-2% growth, quarter over quarter. The adjusted EBITDA is likely to be between $762 million and $782 million.
Equinix is steadily strengthening its portfolio on the back of acquisitions and development. In December 2021, EQIX announced its plan to tap the growing African market with the takeover of MainOne. EQIX’s efforts to bolster its presence in Africa will add scale and strengthen its position in the region, while helping it benefit from sturdy growth of data consumption.
During the quarter, Equinix also announced a multi-year partnership with Nasdaq. This extended alliance reflects buoyant demand for EQIX’s data-center infrastructure amid robust growth in cloud computing.
However, huge capital outlays required for expansion moves and stiff competition from carrier-neutral data centers act as deterrents for Equinix.
Prior to the fourth-quarter earnings release, the Zacks Consensus Estimate for the quarterly FFO per share has been unrevised at $6.27 in the past month. However, the same suggests 8.9% growth from the prior-year period’s reading.
For the full year, the Zacks Consensus Estimate for FFO per share has been stable at $27.2 over the past month. However, the figure indicates a 9.9% increase from the prior-year period’s actuals while the consensus mark for revenues which stands at $6.63 billion marks a year over year growth of 10.5%.
For the ongoing year, management predicted that the adjusted FFO per share is estimated to be $27.03-$27.25, suggesting a 9-10% year-over-year increase.
Further, Equinix estimated to generate revenues of $6.614-$6.634 billion, indicating growth of 10-11% on a year-over-year basis. Assuming the integration costs of $18 million, management predicted adjusted EBITDA of $3.119-$3.139 billion.
What the Zacks Model Unveils
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for EQIX this season. Equinix does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an FFO beat this time around.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Equinix has an Earnings ESP of 0.00%
Zacks Rank: Equinix currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Some stocks worth considering from the REIT sector are Host Hotels & Resorts (HST - Free Report) , Life Storage and National Storage Affiliates Trust (NSA - Free Report) . Our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Host Hotels & Resorts, slated to release fourth-quarter earnings on Feb 16, has an Earnings ESP of +61.38% and a Zacks Rank #3 at present.
Life Storage, scheduled to report quarterly figures on Feb 24, has an Earnings ESP of +0.66% and a Zacks Rank of 3, currently.
National Storage Affiliates, slated to release fourth-quarter earnings on Feb 22, has an Earnings ESP of +1.06% and a Zacks Rank of 2 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.