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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 first-quarter 2022 results on Apr 27 after market close. Equinix’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the previous quarter, Equinix reported a negative surprise of 0.80% in terms of adjusted FFO per share.
Over the preceding four quarters, EQIX’s FFO per share surpassed estimates on three occasions and missed the same on the other, the average being 3.14%. This is depicted in the graph below:
Let’s see how things have shaped up before this announcement.
Factors at Play
Equinix enjoys a geographically-diversified portfolio. The company is well-poised to benefit from the robust digital footprint of International Business Exchanges (IBX) data centers.
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 the AI, 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 in the first quarter of 2022.
The rising cloud adoption is expected to have helped Equinix continue capturing demand and growing its interconnected ecosystems during the first quarter. The Zacks Consensus Estimate for interconnection revenues is pegged at $309 million, suggesting growth from $303 million in the prior quarter and $280 million in the year-ago period.
The consensus estimate for revenues is pegged at $1.75 billion, suggesting a 9.4% improvement from the year-earlier quarter’s actuals.
Equinix is steadily strengthening its portfolio with acquisitions and development. During the quarter, EQIX announced that it is planning its expansion in Chile and Peru with the $705-million acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A. (Entel), a leading Chilean telecommunications provider.
For the first quarter of 2022, Equinix projected revenues in the range of $1.726- $1.746 billion, calling for a 2% increase quarter over quarter at the midpoint. Adjusted EBITDA is expected between $781 million and $801 million.
However, huge capital outlays required for expansion moves and the stiff competition from carrier-neutral data centers act as deterrents for Equinix.
Before the first-quarter earnings release, the Zacks Consensus Estimate for the quarterly FFO per share has been revised marginally downward to $7.19 in the past week. However, the same suggests 3% growth from the prior-year period’s reading.
Here Is What Our Quantitative Model Predicts:
Equinix has the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
Earnings ESP: Equinix has an Earnings ESP of +2.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks like Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) that are worth considering from the REIT sector as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.17% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
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 first-quarter 2022 results on Apr 27 after market close. Equinix’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the previous quarter, Equinix reported a negative surprise of 0.80% in terms of adjusted FFO per share.
Over the preceding four quarters, EQIX’s FFO per share surpassed estimates on three occasions and missed the same on the other, the average being 3.14%. This is depicted in the graph below:
Equinix, Inc. Price and EPS Surprise
Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors at Play
Equinix enjoys a geographically-diversified portfolio. The company is well-poised to benefit from the robust digital footprint of International Business Exchanges (IBX) data centers.
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 the AI, 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 in the first quarter of 2022.
The rising cloud adoption is expected to have helped Equinix continue capturing demand and growing its interconnected ecosystems during the first quarter. The Zacks Consensus Estimate for interconnection revenues is pegged at $309 million, suggesting growth from $303 million in the prior quarter and $280 million in the year-ago period.
The consensus estimate for revenues is pegged at $1.75 billion, suggesting a 9.4% improvement from the year-earlier quarter’s actuals.
Equinix is steadily strengthening its portfolio with acquisitions and development. During the quarter, EQIX announced that it is planning its expansion in Chile and Peru with the $705-million acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A. (Entel), a leading Chilean telecommunications provider.
For the first quarter of 2022, Equinix projected revenues in the range of $1.726- $1.746 billion, calling for a 2% increase quarter over quarter at the midpoint. Adjusted EBITDA is expected between $781 million and $801 million.
However, huge capital outlays required for expansion moves and the stiff competition from carrier-neutral data centers act as deterrents for Equinix.
Before the first-quarter earnings release, the Zacks Consensus Estimate for the quarterly FFO per share has been revised marginally downward to $7.19 in the past week. However, the same suggests 3% growth from the prior-year period’s reading.
Here Is What Our Quantitative Model Predicts:
Equinix has the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
Earnings ESP: Equinix has an Earnings ESP of +2.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EQIX 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
Here are some stocks like Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) that are worth considering from the REIT sector as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.17% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
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.