Digital Realty Trust Inc
Equinix Has 88% ‘Buy’ Ratings ahead of Its Q3 2018 Earnings
On October 23, eight of the 25 analysts gave EQIX a “strong buy” rating, 14 gave it a “buy” rating, and the remaining three gave the stock a “hold.”
Equinix Trades at a Premium Valuation against Its Peers
Equinix (EQIX) has a TTM price-to-AFFO ratio of 20.2x.
Emerging Tech Trends Driving Demand for Equinix’s Data Centers
The worldwide data center colocation market is expected to reach $62.3 billion by 2022 from $31.52 billion in 2017, representing a CAGR of 14.6%.
Equinix’s Valuation and Analysts’ Ratings
For Equinix, eight out of 20 analysts recommended a “strong buy,” 14 recommended a “buy,” and two recommended a “hold.”
Equinix Continues to Enhance Shareholders’ Wealth
On August 8, Equinix (EQIX) declared a regular quarterly cash dividend of $2.28 per share for the third quarter.
What’s Driving Equinix’s Adjusted Earnings and Margin?
Equinix’s Q2 2018 adjusted EBITDA of $604 million rose ~19% on a YoY basis and surpassed its own guidance range of $579 million–$589 million.
Equinix’s Demand and Global Expansion Strategies
Equinix’s (EQIX) second-quarter revenues increased 18% YoY (year-over-year) to $1.262 billion—sequential growth for the 62nd consecutive quarter.
Equinix’s Second-Quarter Results Beat Analysts’ Expectations
Equinix reported strong financial results. The company’s top and bottom-line results for the second quarter were ahead of analysts’ estimates.
Why Wall Street Loves Data Center REITs—Including Equinix
Over the last four months, analysts have maintained their “buy” recommendations on Equinix stock.
Assessing Equinix’s Valuations against Its Competitors
Based on market capitalization, Equinix is the world’s largest data center REIT with a market value of $35.2 billion.
Equinix to Continue Rewarding Shareholders with Dividend Payments
In 2015, 2016 and 2017, Equinix paid regular cash dividend per share of $6.76, $7.00 and $8.00, respectively.
New Technology Trends Driving Demand for Equinix’s Data Centers
According to International Data Corporation, the total data generated worldwide is expected to cross 163 zettabytes by 2025 from 16.3 zettabytes in 2016.
Equinix Is Trading above the Industry Average
Equinix’s 3Q17 funds from operations stood at $4.97 per share. Its expected FFO was $4.11 for a surprise of ~20.9%.
How Equinix Rewards Its Shareholders
Equinix (EQIX) announced a dividend of $2.00 per share for 3Q17, leading to a total of $8.00 for 2017 and up from $7.00 in 2016.
Equinix: Debt, Balance Sheet, and Capex
Equinix (EQIX) had capex of $320.0 million in 3Q17, which included recurring capex of $45.0 million.
Equinix: A Complete Overview
Equinix generated an ~30.0% yield on gross property, plant, and equipment on stabilized assets. It generated a ten-year shareholder return of ~18.0%.
Equinix: Performance in International Markets
Equinix’s 3Q17 revenues in the Americas rose 12% quarter-over-quarter and 40% year-over-year on an as-reported basis.
How Does Digital Realty Compare to Its Peers?
Digital Realty has outperformed its ETFs based on PBV ratio.The PBV ratios of Digital Realty, ICF, SCHH, and FTY are 3.5x, 2.5x, 2.4x, and 2.4x, respectively.
Digital Realty Reports Mixed Quarterly Results for 3Q15
Digital Realty’s (DLR) stock has had its ups and downs in 2015. After the 3Q15 earnings report, DLR fell by 0.94% to close at $71.85 per share on October 29, 2015.
Technological Advancement Could Boost Data Center REITs
A data center requires a lot of power to run its operations. As a result, data center REITs rent their space to tenants mainly based on power capacity usage.
Singh’s TPG-Axon Capital Management buys a new stake in Equinix
Dinakar Singh’s TPG-Axon initiated a new position in Equinix Inc. (EQIX), a global interconnection and data center company, that accounts for 6.09% of the fund’s portfolio.
Must-know: Why did JANA Partners open a position in Equinix?
Equinix Inc. (EQIX) accounted for a 4.33% position, according to JANA’s 3Q 2013 portfolio. The investor letter stated the fund started building its position late in the second quarter.