Equinix Inc Stock Price, News & Analysis

Equinix (Nasdaq: EQIX) reported its third-quarter 2024 results with quarterly revenues increasing 7% year-over-year to $2.2 billion. The growth was driven by robust pricing, strong deal conversions, and improvements in billable cabinets. Operating income stood at $425 million, lower than the previous quarter due to a Q2 asset sale gain. Net income attributable to common stockholders was $297 million or $3.10 per share, both lower than the previous quarter for the same reason. Adjusted EBITDA was $1.048 billion, a 1% increase over the previous quarter, with a 48% margin. AFFO per share was $9.05, down due to higher recurring capital expenditures. Equinix also announced a $15 billion joint venture to meet growing AI demand, expected to triple its xScale data center portfolio investment. The company’s annual guidance projects revenues of $8.748 - $8.788 billion, adjusted EBITDA of $4.086 - $4.126 billion, and AFFO per share of $34.81 - $35.22, reflecting significant growth over the previous year.

Equinix has announced a joint venture agreement with GIC and CPP Investments to raise over $15 billion in capital for expanding its xScale data center portfolio in the U.S. This expansion is driven by increasing AI and cloud growth. The JV aims to nearly triple the investment capital of Equinix's xScale program, with plans to build new facilities on multiple 100+ megawatt campuses, adding more than 1.5 gigawatts of new capacity for hyperscale customers.

Under the agreement, CPP Investments and GIC will each control a 37.5% equity interest, while Equinix will own 25%. The JV is expected to close in Q4 2024, subject to regulatory approvals. This expansion will complement Equinix's existing global presence, which includes 72 global metros and an ecosystem of over 10,000 customers.

Equinix has issued more than $750 million in green bonds across two completed offerings, bringing its total green bond issuance to approximately $5.6 billion. This makes Equinix one of the top 10 largest U.S. corporate issuers in the investment-grade green bond market.

The company issued €600 million in 3.65% senior green notes due 2033 and Swiss Franc 100 million in 1.5575% senior green notes due 2029. These bonds will fund Eligible Green Projects, including green building development, renewable energy innovations, energy efficiency, resource conservation, and decarbonization solutions.

Equinix's sustainability efforts have led to 96% renewable energy coverage across its portfolio in 2023 and an 8%+ improvement in power usage effectiveness compared to the previous year. The company has also been recognized on the CDP's Climate Change A List for two consecutive years.

Equinix (Nasdaq: EQIX), the world's digital infrastructure company, has announced a quarterly cash dividend of $4.26 per share on its common stock. The dividend will be paid on September 18, 2024, to shareholders of record on August 21, 2024. This declaration demonstrates Equinix's commitment to returning value to its shareholders.

Equinix provides a trusted platform for digital leaders to interconnect foundational infrastructure, enabling organizations to scale, launch digital services, and enhance their value while supporting sustainability goals.

Equinix reported its Q2 2024 results, showing strong financial growth. Revenues increased 7% YoY to $2.2 billion, with a 2% rise QoQ despite a $6 million negative currency impact. Net income surged 45% YoY to $301 million, and adjusted EBITDA reached over $1 billion for the first time, marking a 4% QoQ increase. The company closed its first multi-hundred-megawatt xScale campus in Atlanta and continues to expand its xScale portfolio to support cloud and AI training workloads.

Operating income climbed 20% QoQ to $436 million, influenced by a gain from the sale of the Silicon Valley 12 xScale asset. Earnings per share (EPS) rose 30% QoQ to $3.16. Adjusted EBITDA margin stood at 48%, and AFFO per share increased by 4% QoQ to $9.22.

2024 annual guidance predicts revenue between $8.692 billion and $8.772 billion, up 6-7% YoY. Adjusted EBITDA is expected to be between $4.066 billion and $4.126 billion, with an AFFO forecast of $3.310 billion to $3.370 billion, translating to $34.67 to $35.30 per share.

Equinix (Nasdaq: EQIX) has announced its planned entry into the Philippines with the acquisition of three data centers from Total Information Management (TIM). This strategic move aims to expand Equinix's digital infrastructure platform and capitalize on the fast-growing Southeast Asian market. The all-cash transaction, valued at approximately 15x projected EBITDA at full utilization, is expected to close in 2H 2024.

The acquisition will provide Equinix with capacity to address digital needs of businesses in the Philippines, offering access to Platform Equinix® for secure data exchange within a global ecosystem. The Philippines' digital economy is projected to reach $35 billion by 2025, growing at a 20% CAGR. This expansion aligns with Equinix's vision to extend its leadership in the Asia-Pacific region and accelerate digital economy growth.

Equinix announced the expansion of its Heat Export program, encouraging municipal planning agencies, energy utilities, and heat network operators to join in leveraging residual heat from its IBX data centers. The initiative, already active in regions like France, Finland, Germany, Ireland, Switzerland, and Canada, aims to provide a sustainable heating solution amidst rising global energy prices. Key projects include the PA10 IBX in Paris, set to heat the Plaine Saulnier urban zone and the Olympic Aquatic Centre, and TR5 in Toronto, supplying heat to multiple residential and commercial buildings. Equinix's sustainability strategy focuses on energy efficiency and renewable energy, aiming for climate neutrality by 2030.

Equinix (Nasdaq: EQIX) announced the pricing of a $750 million public offering of 5.500% Senior Notes due 2034. After conversion to EUR, the effective interest rate will be approximately 3.9%. These Notes, issued by wholly-owned subsidiary Equinix Europe 2 Financing , will be unsecured and guaranteed by Equinix. The transaction is expected to close on May 30, 2024. The net proceeds, estimated at $736 million, will fund acquisitions, development, working capital, and refinancing of existing debt. This includes the repayment of $1 billion principal of U.S.-dollar denominated Senior Notes due November 2024. Leading financial institutions such as Barclays, BNP Paribas, BofA Securities, Goldman Sachs, HSBC, and J.P. Morgan are managing the offering.

Equinix (Nasdaq: EQIX) has announced the availability of Dell PowerStore on Equinix Metal, introducing a new enterprise-grade Storage as a Service (STaaS) solution. This service offers flexible configurations to manage high-performance multicloud workloads through low-latency connectivity, enhancing data collection and distribution. It provides scalable storage with a burst capacity of 25% above committed levels, reducing total cost of ownership (TCO) and optimizing resources. Key benefits include global availability, simplified infrastructure management, and robust security with multi-layer data encryption. The service is available in over 30 markets, including Brazil, with an entry point of 25 tebibytes.