Equinix Expects Q1 Revenues To Range Between $2.127B-$2.147B Vs $2.14B Est; FY24 Revenue $8.793B-$8.893B Vs $8.87B Est.
Portfolio Pulse from Benzinga Newsdesk
Equinix (EQIX) projects Q1 2024 revenues to be between $2.127B-$2.147B, slightly below the $2.14B estimate, with full-year revenues expected between $8.793B-$8.893B, against an $8.87B estimate. The company anticipates a 1-2% quarterly revenue increase, or flat on a normalized basis, including a $38M foreign currency benefit. Adjusted EBITDA for Q1 is forecasted between $960M-$980M, incorporating a $18M currency benefit and $5M in acquisition integration costs. For 2024, Equinix expects a 7-9% revenue increase year-over-year, with adjusted EBITDA between $4.089B-$4.169B, including a $67M currency benefit. AFFO is projected to grow 9-12%, with per-share figures between $34.58-$35.31. The guidance accounts for significant non-recurring and recurring capital expenditures, including xScale-related investments expected to be reimbursed by current and future xScale JVs.
February 14, 2024 | 9:12 pm
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NEUTRAL IMPACT
Equinix expects Q1 2024 revenues to be slightly below estimates, with a modest 1-2% increase over the previous quarter. Full-year 2024 revenue projections are also slightly below estimates, but the company anticipates healthy growth in adjusted EBITDA and AFFO, alongside significant capital expenditures.
Equinix's revenue projections for Q1 2024 are slightly below analyst estimates, which could initially concern investors. However, the forecasted growth in adjusted EBITDA and AFFO, along with strategic capital expenditures, suggest a positive outlook for operational efficiency and long-term growth. The slight miss in revenue estimates is balanced by the company's overall positive financial health and strategic investments, leading to a neutral short-term price direction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100