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Equinix (NASDAQ:EQIX) stock gained 2.1% in Wednesday after-hours trading after it issued 2024 earnings guidance that was far higher than the Wall Street consensus, and Q4 results also topped the average analyst estimate by a comfortable margin as demand for its digital infrastructure properties is strengthened by advances in artificial intelligence.
The company expects 2024 adjusted FFO per share of $34.58-$35.31 compared with the average analyst estimate and $24.24 reported in 2023. Revenue is expected to be $8.793B-$8.893B vs. the $8.89B consensus and $8.188B it recorded last year. Adjusted EBITDA is expected to reach $4.089B-$4.169B vs. $3.702B reported for 2023.
For Q1, the REIT expects revenue of $2.127B-$2.147B vs. $2.15B consensus and adjusted EBITDA of $960M-$980M vs. $920.5M reported in Q4 2023.
"Digital transformation, especially in an AI-driven world, is as important as ever to our customers," said CEO and President Charles Meyers. "In this context, the significance of Platform Equinix and its strong competitive advantages has never been more crucial."
Q4 2023 FFO of $5.54, vs. the average analyst estimate of $5.30, fell from $5.97 in Q3 and climbed from $4.39 in Q4 2022.
Revenue of $2.11B, the same as the consensus, increased from $2.06B in the prior quarter and $1.87B a year ago.
Total cash operating expense at $433.5M, rose from $399.3M in the previous quarter and $389.9M in Q4 2022.
Adjusted EBITDA of $920.5M dropped from $935.9M in Q3 and increased from $838.7M in Q4 2022. Adjusted EBITDA margin of 44% vs. 45% in the prior quarter and 45% in the year-ago quarter.
Conference call at 5:30 PM ET.
Earlier, Equinix FFO of $5.54 beats by $0.24, revenue of $2.11B in line.