Equinix to Post Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Equinix, Inc. is expected to report year-over-year growth in revenues and adjusted funds from operations (AFFO) per share for Q4 and full-year 2024 results, with a focus on strong demand for digital infrastructure driving performance [1][2][3]. Financial Performance - The Zacks Consensus Estimate for Q4 2024 revenues is between $2.262 billion and $2.302 billion, indicating an 8.1% increase from the previous year [7]. - Colocation revenues are projected at $1.57 billion, reflecting a 6.6% growth from $1.47 billion in the prior-year period, while interconnection revenues are expected to reach $392.8 million, marking a 9.8% increase from $357.7 million [6]. - The estimated adjusted EBITDA for Q4 is between $1.01 billion and $1.05 billion, suggesting a year-over-year increase of 14% [7]. Growth Drivers - Equinix's recurring revenue model, which includes colocation and interconnection services, is anticipated to support stable cash flows and boost top-line growth [5]. - The company is expanding its International Business Exchanges data centers globally to meet the increasing demand for data management and digital transformation strategies [3][4]. Projections for 2024 - For the full year 2024, Equinix projects AFFO per share between $34.81 and $35.22, indicating an 8-10% increase from the previous year [9]. - Total revenues are estimated to be in the range of $8.748 billion to $8.788 billion, representing a year-over-year growth of 7% [10]. - The Zacks Consensus Estimate for full-year AFFO per share is pegged at $35.19, reflecting a 9.6% increase year over year [10]. Market Sentiment - Despite the positive growth outlook, high interest expenses may partially hinder quarterly performance, with an estimated year-over-year increase of 8.1% in interest expenses [8]. - The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $8.11, suggesting an 11.1% increase from the prior-year quarter [8].