Equinix Earnings: Here’s Why the Stock is Falling Now

Equinix, Inc. (NASDAQ:EQIX) delivered a profit 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 10.81%.

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Equinix, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.71 in the quarter as EPS of $0.71 in the year-earlier quarter.

Revenue: Rose 14.87% to $519.46 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equinix, Inc. reported adjusted EPS income of $0.71 per share. By that measure, the company missed the mean analyst estimate of $0.78. It missed the average revenue estimate of $521.85 million.

Quoting Management: “Equinix delivered solid financial results in the first quarter, and we are well positioned for the remainder of 2013,” said Steve Smith, president and CEO of Equinix. “We are executing with discipline and focus to capture the demand driven by strong secular trends in video, cloud, mobility and IP traffic. This quarter we saw record bookings in Cloud as service providers expand their services to meet the changing needs of enterprises who are deploying hybrid cloud architectures across Platform Equinix.”

Key Stats (on next page)…

Revenue increased 2.55% from $506.52 million in the previous quarter. EPS decreased 26.8% from $0.97 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.79 to a profit $0.89. For the current year, the average estimate has moved up from a profit of $3.27 to a profit of $3.68 over the last ninety days.

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