Equinix Keeps On Chugging

The flagship of the carrier neutral colocation industry, Equinix (NASDAQ:EQIX, news, filings), posted its usual solid quarter today.  Revenues of $394.9 included $11.7M from the ALOG acquisition down in Brazil, but even excluding that still exceeded both guidance and analyst estimates.  Diluted earnings per share of $0.64 easily bested guidance of $0.48.  Here is a quick tabular summary of Equinix’s Q2 in the context of the past few quarters:

$ in millions	Q1/10	Q2/10	Q3/10	Q4/10	Q1/11	Q2/11	Q3/11(guidance)	FY/11 (guidance)
– Recurring	237.2	282.1	314.7	326.3	343.9	376.5
– Non-recurring	11.4	14.0	15.6	18.9	19.1	18.4
Revenues	248.6	296.1	330.3	345.2	363.0	394.9	412-417	1590
COS	133.1	162.6	185.5	193.6	194.6	215.6
SG&A	62.6	83.1	89.8	96.3	97.1	102.7
Adjusted EBITDA	117.3	132.2	146.5	148.9	167.3	181.3	180-185	>720
Earnings Per Share	0.35	(0.05)	0.24	0.29	0.53	0.64
Ongoing Capex	14.5	26.9	40.7	32.4	32.7	28.0	30	115
Expansion Capex	128.9	121.8	103.2	111.0	139.8	160.9	130-160	530-550

Equinix also raised guidance, mostly to account for the inclusion of ALOG’s results of course but still in excess of analyst estimates after backing that out.  As usual, Equinix offered very tight guidance relative to the growth rate they anticipate.  For Q3 they expect a surge in revenue, but for EBITDA to lag that surge somewhat as margins will fall in the short term.  I’ll be interested to see where that goes later on.  Capex levels are expected to remain at about current levels, which should surprise nobody given the number of projects they are working on internationally.

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Categories: Datacenter · Financials