Equinix, Inc. EQIX is scheduled to report third-quarter 2024 results on Oct. 30 after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues and adjusted funds from operations (FFO) per share.

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In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported a surprise of 4.5% in terms of AFFO per share. Its quarterly results reflected steady growth in colocation and inter-connection revenues due to strong demand for digital infrastructure.

Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on all occasions, the average beat being 3.4%. This is depicted in the graph below:

Equinix, Inc. Price and EPS Surprise

Equinix, Inc. price-eps-surprise | Equinix, Inc. Quote

Factors at Play for Equinix

There is growing reliance on technology and acceleration in digital transformation strategies by enterprises that call for data exchanges. To meet this global need, Equinix is expanding its International Business Exchanges data centers globally and is gaining traction among tech companies looking for data management.

Equinix is expected to have continued with its asset-based expansion during the quarter through acquisitions and development activities. Its robust balance sheet position is likely to have enabled it to capitalize on long-term growth opportunities.

The company’s recurring revenue model, which comprises colocation, related interconnection and managed IT infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line. Also, solid demand for Equinix’s interconnected ecosystem in the to-be-reported quarter is likely to have given it an edge.

Projections for EQIX

The Zacks Consensus Estimate for colocation revenues is pegged at $1.53 billion, suggesting growth of 4.6% from $1.46 billion in the prior-year period. The consensus mark for interconnection revenues is pegged at $381 million, indicating growth of 7.9% from $353 million in the prior-year period.

For the third quarter of 2024, Equinix projected revenues between $2.19 billion and $2.21 billion. The Zacks Consensus Estimate stands at $2.20 billion, calling for a rise of 6.8% from the year-ago period’s reported figure.

EQIX estimated adjusted EBITDA in the range of $1.03-$1.05 billion for the third quarter. Our estimate is pegged at $1.04 billion, implying a year-over-year increase of 11.5%.