What's Going On With Data Center REIT Equinix Stock Today?

Equinix, Inc. EQIX shares are trading higher after the company reported first-quarter FY24 results.

Revenues increased 6% Y/Y to $2.13 billion, missing the consensus of $2.14 billion. Adjusted EBITDA rose to $992 million from $945 million a year ago, with a margin of 47% (flat Y/Y).

Equinix currently has 50 major projects underway across 34 markets in 21 countries. Adjusted FFO per share of $8.86 beat the consensus of $8.64.

Also, in the quarter, Equinix interconnection adds increased to 6,200, supported by healthy gross adds activity and moderation of consolidations into higher bandwidth connections.

Dividend: The Board of Directors declared a quarterly dividend per share of $4.26, payable on June 19 to shareholders of record as of May 22.

Charles Meyers, President and CEO, said, “The rapidly evolving AI landscape continues to serve as a catalyst for economic expansion, creating immense potential for Equinix as our customers recognize the importance of digital initiatives in driving long-term revenue growth and operational efficiency. This strong demand from customers across multiple sectors positions Platform Equinix as the trusted partner for digital leaders to interconnect and enhance the foundational digital infrastructure that powers our world.”

Also Read: Equinix Eyes African Growth With $390M Investment In Data Center Expansion: Report

Outlook: For the second quarter, Equinix projects revenues of $2.148 billion-$2.168 billion vs. consensus of $2.18 billion, adjusted EBITDA of $1.019 billion-$1.039 billion.

For FY24, the company expects revenue of $8.692 billion – $8.792 billion (down from prior $8.793 billion – $8.893 billion), compared to the $8.86 billion estimate.

Equinix anticipates FY24 adjusted FFO per share of $34.45 – $35.29 against the consensus of $34.99 (down from the prior outlook of $34.58 – $35.31).

Also Read: Equinix Forms Its Second Joint Venture With PGIM Real Estate – What’s On The Cards?

In March, Equinix announced the appointment of Adaire Fox-Martin as the new President and CEO, succeeding Charles Meyers, effective second-quarter 2024.

In another development, ServiceNow, Inc. NOW, the AI platform for business transformation, announced on Wednesday an expansion of the strategic relationship with Equinix to streamline operations of digital infrastructure.

Investors can gain exposure to the stock via Pacer Data & Infrastructure Real Estate ETF SRVR and Elevation Series Trust SRH REIT Covered Call ETF SRHR.

Price Action: EQIX shares are up 11.6% at $773.15 at the last check Thursday.

Photo: courtesy of Equinix