Equinix's Q4 AFFO & Revenues Miss Estimates, Dividend Hiked

Core Insights - Equinix Inc. reported fourth-quarter 2024 adjusted funds from operations (AFFO) per share of $7.92, missing the Zacks Consensus Estimate of$ 8.11, but showing an 8.5% improvement year over year [1][3] - The company experienced higher non-recurring charges that impacted performance, but steady growth in colocation and interconnection revenues, driven by strong demand for digital infrastructure, partially supported results [2][4] - Total quarterly revenues reached $2.26 billion, slightly missing the consensus estimate, but reflecting a 7.1% year-over-year increase [3] Financial Performance - For the full year 2024, AFFO per share was$ 35.02, a 9.1% increase from the previous year, although it fell short of the consensus estimate of $35.19 [3] - Total revenues for 2024 amounted to$ 8.75 billion, up 6.8% year over year, but also missed the consensus mark [3] - Recurring revenues in Q4 were $2.09 billion, a 5.8% increase from the prior year, while non-recurring revenues rose significantly by 26.9% to$ 170 million [4] Operational Highlights - Adjusted EBITDA for the quarter was $1.02 billion, an 11% year-over-year increase, with an adjusted EBITDA margin of 45% [5] - The company spent$ 115 million on recurring capital expenditure in Q4, a 9.5% increase year over year, while non-recurring capital expenditure was $872 million, down 2.2% [6] Balance Sheet and Liquidity - As of December 31, 2024, Equinix had$ 7.5 billion in available liquidity, with total debt around $17.6 billion and a net leverage ratio of 3.4 [7] Dividend and Guidance - Equinix's board announced a quarterly cash dividend of$ 4.69 per share, reflecting a 10% increase over the previous quarter [8] - For Q1 2025, the company projects revenues between $2.19 billion and$ 2.23 billion, indicating a 1-3% decrease from the prior quarter, with adjusted EBITDA expected in the range of $1.01 billion to$ 1.05 billion [9][10]