Equinix Earnings: Here’s Why Investors are Selling Shares Now

Equinix, Inc. (NASDAQ:EQIX) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.63%.

Equinix, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.58 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 12.75% to $525.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equinix, Inc. reported adjusted EPS loss of $0.58 per share. By that measure, the company missed the mean analyst estimate of $0.7. It missed the average revenue estimate of $533.34 million.

Quoting Management: “Our strong quarterly results reflect growth in all three regions, with particular strength in the cloud vertical. We are winning smaller, interconnection rich deals that enhance our vertical ecosystems while keeping MRR per cabinet firm through a disciplined approach to pricing and customer mix,” said Steve Smith, president and CEO of Equinix. “We remain confident in our long-term strategy and will execute with discipline while balancing top and bottom line growth.”

Key Stats (on next page)…

Revenue increased 1.2% from $519.46 million in the previous quarter. EPS decreased to $-0.58 in the quarter versus EPS of $0.71 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.91 to a profit $0.82. For the current year, the average estimate has moved down from a profit of $3.52 to a profit of $3.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)