Equinix, Inc. (NASDAQ:EQIX), a leading data center real estate investment trust (REIT) based in Redwood City, California, specializes in providing colocation and interconnection services, essential for digital infrastructure. Competing with other data center providers like Digital Realty Trust and CyrusOne, Equinix is set to release its quarterly earnings on February 12, 2025.
Wall Street analysts estimate Equinix's earnings per share (EPS) to be $2.75, with projected revenue of approximately $2.28 billion. The company's results are expected to show year-over-year growth in both revenues and adjusted funds from operations (AFFO) per share, driven by the increasing demand for data centers amid rising digitization. However, high interest expenses may have negatively impacted the earnings.
In the previous quarter, Equinix reported a 4% surprise in AFFO per share, consistently surpassing consensus estimates over the last four quarters with an average beat of 3.13%. This performance is supported by steady growth in colocation and interconnection revenues, reflecting strong demand for digital infrastructure. Analysts forecast an 8.1% year-over-year revenue growth to $2.28 billion, with EPS expected to increase by 11.1% to $8.11.
Equinix's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 85.15, indicating that investors are willing to pay $85.15 for every dollar of earnings. The company's price-to-sales ratio stands at about 10.58, suggesting that investors are paying $10.58 for every dollar of sales. Equinix's enterprise value to sales ratio is around 12.49, reflecting the company's valuation relative to its sales.
The company's debt-to-equity ratio is approximately 1.41, showing that Equinix uses $1.41 of debt for every dollar of equity. The current ratio is around 1.16, indicating that Equinix has $1.16 in current assets for every dollar of current liabilities, suggesting a relatively balanced liquidity position. These financial metrics provide insight into Equinix's valuation and financial health as it prepares to release its earnings.
