Based in Redwood City, California, Equinix, Inc. (EQIX) is a leader in data center and interconnection services. Known for its extensive portfolio of data centers and digital infrastructure solutions, Equinix plays a crucial role in enabling seamless and secure digital ecosystems. With a market cap of $74.67 billion, Equinix is recognized for its innovation, customer-centric approach, and commitment to providing robust connectivity solutions. Equinix is scheduled to announce its fiscal Q2 earnings results after the market closes on Wednesday, Aug. 7.
Ahead of the event, analysts expect EQIX to report funds from operations (FFO) of $7.88 per share, down 2% from $8.04 in the year-ago quarter. The company has consistently surpassed Wall Street’s FFO estimates in its last four quarterly reports.
Its adjusted FFO of $8.86 per share for the last quarter surpassed the consensus estimate by 15.4%. Strong demand for digital infrastructure drove higher colocation and inter-connection revenues.
For fiscal 2024, analysts expect EQIX to report an FFO of $31.23, down 2.7% from $32.11 in fiscal 2023.
EQIX stock is down 2.3% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 15.4% gains. In comparison, the Real Estate Vanguard ETF (VNQ) gained marginally over the same time frame.
On May 9, EQIX stock rose more than 11% after the REIT reported Q1 adjusted EBITDA of $992 million, which exceeded the consensus forecast of $976.90 million. The REIT reported Q1 revenue of $2.13 billion, falling shy of analyst expectations of $2.14 billion. EQIX expects its full-year revenue to range between $8.69 billion and $8.79 billion.
The consensus opinion on EQIX stock is bullish, with an overall “Strong Buy” rating. Out of 26 analysts covering the stock, 19 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and six recommend a “Hold.”
This configuration is more bullish than three months ago when the stock had 16 “Strong Buy” ratings. EQIX's average analyst price target is $899.91, indicating a potential upside of 14.4% from the current levels.
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