Equinix Earnings: What Investors Should Watch

Equinix (NASDAQ:EQIX) will report earnings after markets close on Wednesday, July 24th. Equinix, Inc. provides core Internet exchange services to networks, Internet infrastructure companies, enterprises, and content providers. The Company operates Internet Business Exchange centers in several countries, where customers can interconnect with the providers that serve Internet networks and users for their peering, transit, and traffic exchange requirements.

Here is your Cheat Sheet to Equinix Earnings:

Earnings Expectations: Analysts expect earnings of $0.70 per share on revenues of $533.44 million. Currently, the company’s P/E ratio stands at 69.49.

Analyst Trends:

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 $0.94 to a profit $0.82. For the current year, the average estimate is a profit of $3.2, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Equinix has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 705 883 1,220 1,607 1,896
Diluted EPS ($) 3.31 1.75 0.82 1.72 2.92

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 466.26 488.73 506.52 519.46
Diluted EPS ($) 0.73 0.58 0.88 0.71

Past Performance:
Equinix has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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