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Why Is Equinix (EQIX) Up 4.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Equinix (EQIX - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Equinix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Equinix’s FFO Misses the Mark, Revenues Beat in Q4
Equinix fourth-quarter 2021 adjusted FFO (AFFO) per share lagged the Zacks Consensus Estimate while revenues surpassed the Zacks Consensus Estimate. However, both figures witnessed year-over-year growth.
The company’s quarterly AFFO per share was $6.22, missing the Zacks Consensus Estimate of $6.27. However, the figure improved 8% from the year-ago quarter’s $5.76.
This upside primarily stemmed from steady growth in the inter-connection revenues. During the fourth quarter, Equinix added an additional 7,500 inter-connections, bringing its total inter-connections to 419,300.
Quarter in Detail
Total quarterly revenues came in at $1.71 billion, beating the Zacks Consensus Estimate of $1.7 billion. Further, the top line improved 9.1% year over year, marking the 76th consecutive quarter of top-line growth.
Recurring revenues were $1.6 billion, up 9.4% from the year-ago quarter’s figure. Non-recurring revenues climbed 5% from the year-ago quarter’s level to $102.9 million.
Revenues from the three geographic regions increased on a year-over-year basis as well. Revenues from the Americas, EMEA and the Asia Pacific jumped 9.8%, 8.2% and 8.9% to $782.1 million, $553.3 million and $370.9 million, respectively.
The adjusted EBITDA came in at $787.6 million, up 10.7% year over year.
The AFFO jumped 9.1% year over year to $564.2 million during the December-end quarter.
The adjusted EBITDA margin was 46%, up from 45% recorded in the prior-year quarter.
Balance Sheet
Equinix exited 2021with cash and cash equivalents of $1.54 billion, down from $1.6 billion reported at the end of 2020. The company’s total debt principal outstanding was $13.9 billion as of Dec 31, 2021, up from $12.5 billion witnessed at the end of 2020.
Guidance
For first-quarter 2022, Equinix projects revenues of $1.726- $1.746 billion, calling for a 2% increase quarter-over-quarter at the midpoint. The adjusted EBITDA is expected between $781 million and $801 million.
For 2022, Equinix estimates to generate revenues of $7.202-$7.252 billion, indicating growth of 9% from the year-ago period’s reported figure. The company expects to incur $20 million of acquisition-related integration costs. Management predicts adjusted EBITDA of $3.307-$3.337 billion.
For the full year, the AFFO per share is estimated between $28.87 and $29.20, suggesting a 6-8% increase from the prior-year ’s reported number.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Equinix has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Equinix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Equinix (EQIX) Up 4.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Equinix (EQIX - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Equinix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Equinix’s FFO Misses the Mark, Revenues Beat in Q4
Equinix fourth-quarter 2021 adjusted FFO (AFFO) per share lagged the Zacks Consensus Estimate while revenues surpassed the Zacks Consensus Estimate. However, both figures witnessed year-over-year growth.
The company’s quarterly AFFO per share was $6.22, missing the Zacks Consensus Estimate of $6.27. However, the figure improved 8% from the year-ago quarter’s $5.76.
This upside primarily stemmed from steady growth in the inter-connection revenues. During the fourth quarter, Equinix added an additional 7,500 inter-connections, bringing its total inter-connections to 419,300.
Quarter in Detail
Total quarterly revenues came in at $1.71 billion, beating the Zacks Consensus Estimate of $1.7 billion. Further, the top line improved 9.1% year over year, marking the 76th consecutive quarter of top-line growth.
Recurring revenues were $1.6 billion, up 9.4% from the year-ago quarter’s figure. Non-recurring revenues climbed 5% from the year-ago quarter’s level to $102.9 million.
Revenues from the three geographic regions increased on a year-over-year basis as well. Revenues from the Americas, EMEA and the Asia Pacific jumped 9.8%, 8.2% and 8.9% to $782.1 million, $553.3 million and $370.9 million, respectively.
The adjusted EBITDA came in at $787.6 million, up 10.7% year over year.
The AFFO jumped 9.1% year over year to $564.2 million during the December-end quarter.
The adjusted EBITDA margin was 46%, up from 45% recorded in the prior-year quarter.
Balance Sheet
Equinix exited 2021with cash and cash equivalents of $1.54 billion, down from $1.6 billion reported at the end of 2020. The company’s total debt principal outstanding was $13.9 billion as of Dec 31, 2021, up from $12.5 billion witnessed at the end of 2020.
Guidance
For first-quarter 2022, Equinix projects revenues of $1.726- $1.746 billion, calling for a 2% increase quarter-over-quarter at the midpoint. The adjusted EBITDA is expected between $781 million and $801 million.
For 2022, Equinix estimates to generate revenues of $7.202-$7.252 billion, indicating growth of 9% from the year-ago period’s reported figure. The company expects to incur $20 million of acquisition-related integration costs. Management predicts adjusted EBITDA of $3.307-$3.337 billion.
For the full year, the AFFO per share is estimated between $28.87 and $29.20, suggesting a 6-8% increase from the prior-year ’s reported number.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Equinix has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Equinix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.