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Equinix, Inc. EQIX is scheduled to report first-quarter 2025 results on April 30, after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues and adjusted funds from operations (AFFO) per share.
In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported an AFFO of $7.92 per share, missing the Zacks Consensus Estimate of $8.11 per share. Its quarterly results reflected higher non-recurring charges, undermining the performance. However, steady growth in colocation and interconnection revenues, led by strong demand for digital infrastructure, supported the results to an extent.
Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on three occasions and missed once, the average beat being 2.43%. 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
In the first quarter of 2025, Equinix is likely to have benefited from the solid demand for interconnected data center infrastructure. Enterprises and service providers’ continued efforts to integrate artificial intelligence (AI) into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the upcoming years.
Moreover, the demand for Equinix’s interconnected ecosystem remains strong, driven by an acceleration in enterprise cloud adoption and increasing cloud or Internet customers’ demands for highly interconnected data center space.
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.
However, high interest expenses due to a substantial debt burden might have undermined its quarterly performance to some extent.
Q1 Projections for EQIX
The Zacks Consensus Estimate for colocation revenues is pegged at $1.52 billion, suggesting growth of 2.3% from $1.49 billion in the prior-year period. The consensus mark for interconnection revenues is pegged at $395 million, indicating growth of 7.2% from $368 million in the prior-year period.
For the first quarter of 2025, Equinix projected revenues between $2.19 billion and $2.23 billion. The Zacks Consensus Estimates for the same stands at $2.22 billion, indicating an increase of 4.18% from the year-ago period’s reported figure.
EQIX estimated adjusted EBITDA in the range of $1.01-$1.05 billion for the first quarter. Our estimate is pegged at $1.05 billion, implying a year-over-year increase of 5.9%.