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.
Acquisitions Are Key Growth Drivers for Equinix’s Q3 Revenues
Equinix’s 2017 acquisition of 29 Verizon (VZ) data centers contributed $133.0 million to its second-quarter revenues of $1.26 billion.
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%.
Could Higher Interest, Competition Hurt Equinix’s Q3 AFFO?
Equinix (EQIX) plans to release its Q3 2018 earnings on November 1. Analysts expect its Q3 revenues to rise ~11% YoY to $1.28 billion.
Equinix’s Latest Performance and Future Projections
Equinix’s (EQIX) revenue rose at a four-year CAGR (compound annual growth rate) of 19% to $4.4 billion in 2017.
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.
Recurring Revenue Business Model Could Drive EQIX’s Profitability
Equinix projects adjusted EBITDA for the third quarter of $579.0 million–$589.0 million, which depict a YoY growth in the range of 13.8%–15.7%.
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.
Global Expansion, Buyout Strategies to Aid Equinix’s Q2 Revenues
Equinix’s expansion strategy has contributed $336.0 million to its first-quarter total revenues of $1.22 billion.
Equinix’s Q2 Earnings: AI, IoT Driving Demand for Data Centers
Equinix (EQIX) plans to report its Q2 results on August 8. Wall Street expects the global data center operator to post revenues of $1.26 billion.
Verizon’s Big Uptake of Amazon Cloud Signals Cost Focus
Verizon (VZ) is significantly increasing its use of Amazon’s (AMZN) cloud, with plans to migrate more applications to Amazon Web Services.
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.
Why Amazon Is Partnering with Equinix
Amazon’s (AMZN) cloud services unit, Amazon Web Services (or AWS), and Equinix (EQIX) have strengthened their partnership.
A Look at Goldman Sachs’s Current Strategy and Stock Picks
Goldman Sachs (GS) disclosed a new strategy that could be lucrative in the present investment scenario.
The Real Estate Reaction: Gauging the Impact of the Fed’s Rate Hikes
The rising interest rate is expected to boost the economy in the long run, but it could severely impact sectors like real estate.
Walmart Launches Online Destination for Last-Minute Shoppers
The S&P 500 Consumer Staples Sector Index rose 0.49% on December 12. Walmart (WMT) and Mondelez (MDLZ) were the top performers.
Outflows in High-Yield Funds Fell, Yield on High-Yield Bonds Rose
Investor flows in high-yield bond funds were negative last week. According to Lipper, the net outflows from high-yield bond funds totaled $0.5 billion.
Sales Boost Zayo Group’s Revenue
Zayo Group has a market cap of $7.02 billion. Zayo Group’s YTD performance is stable. After the earnings report for 4Q15, it fell 0.93% to close at $28.90 per share.
Facebook Exceeds Analysts’ Expectations for 2Q15 Earnings
Facebook (FB) announced its 2Q15 earnings on July 29, 2015. The company reported adjusted EPS of $0.50 and revenue of $4.04 billion, a 39% increase.
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.
Cisco’s Piston Cloud Buyout Is a Means to Enhance Its InterCloud
According to Cisco, InterCloud now serves over 400 data centers across more than 50 countries.
Equinix’s Current High Price-to-Earnings Ratio
Equinix is trading at a PE ratio more than four times the XLK average and 66% more than its peer sector average. In the last ten years, Equinix stock price has increased by a phenomenal 622%.
What Does Facebook’s High Price-to-Earnings Ratio in May Tell Us?
In May 2012, Facebook’s stock price was $38, and its PE ratio was 80.0 x. The ratio reached an all-time high of 7,930x, when net income dropped to $53 million that year.
JANA sells stake in Equinix
JANA Partners sold a significant stake in Equinix (EQIX) during the fourth quarter. The position accounted for 3.38% of the fund’s third-quarter portfolio.
Highlights of CalPERS holdings in 4Q14
CalPERS noted that it has recovered approximately $900 million to date from settlements related to investment losses sustained during the financial crisis.
TPG-Axon raises position with Monsanto
Monsanto received USDA recommendations for deregulation for both Roundup Ready Xtend soybeans and Bollgard II XtendFlex cotton.
TPG-Axon raises position in GNC Holdings
In 3Q14, same-store sales—as measured on a product-only basis—decreased 6.9% in domestic company-owned stores, including GNC.com.
Why TPG-Axon Capital Management exits its stake in Citigroup
TPG-Axon exited its position in Citigroup (C). Citigroup accounted for 4.35% of the fund’s first quarter portfolio.
Why TPG-Axon Capital Management buys a new stake in Baidu Inc.
TPG-Axon initiated a brand new position in Baidu Inc. BIDU accounts for 4.17% of the fund’s second quarter portfolio.
Why AQR Capital increased its position in Apple in 2Q14
AQR Capital increased its position in Apple from 0.86% in the previous quarter to 1.24% in the fund’s second quarter U.S. long portfolio.
Why AQR Capital exits its position in Tableau Software Inc.
AQR Capital sold a position in Tableau Software Inc. in 2Q14. The company accounted for a 0.0346% position in the fund’s first quarter U.S. long portfolio.
Why AQR Capital opens a new position in Equinix
AQR Capital initiated a new position in Equinix in 2Q14. The company accounts for a 0.221% position in the fund’s second quarter U.S. long portfolio.
Overview: AQR Capital Management’s 2Q14 positions
AQR Capital Management is an investment management firm. It was founded in 1998. It was founded by former Goldman Sachs portfolio manager Clifford S. Asness.
Must-know: Eton Park sells stake in Moody’s
Eton Park exited a position in Moody’s Corp (MCO) that accounted for 2.7% of the fund’s first quarter portfolio.
Eric Mindich’s Eton Park exits position in Equinix
Eton Park exited a position in Equinix (EQIX) that accounted for 3.46% of the fund’s first quarter portfolio.
Eton Park opens new position in AerCap Holdings
Eton Park started a new position in AerCap Holdings (AER) that accounts for 1.39% of the fund’s second quarter portfolio.
Eton Park starts new position in Armstrong World Industries
Eton Park started a new position in Armstrong World Industries that accounts for 2.09% of the fund’s second quarter portfolio.
Stephen Mandel’s Lone Pine Capital buys a new position in Equinix
Lone Pine initiated a new position in Equinix (EQIX) last quarter that accounts for 1.81% of the fund’s total 1Q portfolio. Lone Pine had exited the position in 4Q 2013 and restarted it last quarter.
TPG-Axon Capital Management buys a stake in Hertz Global Holdings
TPG-Axon opened a new position in Hertz Global Holdings Inc. (HTZ) that accounts for 5.65% of the fund’s 4Q portfolio.
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.
Assessing Dinakar Singh’s TPG-Axon Capital positions in 4Q13
TPG-Axon Capital Management LP (or TAC) is a privately owned $4 billion hedge fund firm founded by Dinakar Singh in February 2005.
Why did Lone Pine Capital decide to move out of Equinix?
Lone Pine Capital exited a 1.78% position in Equinix, Inc. in 4Q 2013.
Why Lone Pine bought a new position in Endo Health Solutions
Endo Health Solutions is a 1.26% position initiated by Lone Pine Capital in the 2013 last quarter.
Why did Lone Pine Capital buy a stake in SBA Communications?
SBA Communications Corporation is a 2.11% position initiated by Lone Pine Capital in 4Q 2013.
Why did Lone Pine open a position in IntercontinentalExchange?
Lone Pine Capital opened a new 2.19% position in IntercontinentalExchange Group, Inc.
Why did Lone Pine Capital initiate a new position in Microsoft?
Microsoft is a brand new 4.91% position initiated by Lone Pine Capital in the fourth quarter of 2013.
Why did JANA Partners buy a position in Airbus Group?
JANA didn’t disclose the size of its investment in Airbus Group NV (EADSF), but the fund believes Airbus is the superior opportunity within aerospace.
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.
Why did Blue Ridge Capital sell Realogy Holdings in 3Q 2013?
John Griffin’s Blue Ridge Capital liquidated a 1.63% position in Realogy Holdings, a global leader in real estate franchising, in 3Q 2013.
Eton Park Capital opens new positions in FDO, STZ, BID, EQIX, Sells NLSN, PCLN – 13F Flash
In this six-part series, we will go through some of the main positions Eton Park Capital traded this past quarter Eton Park Capital Management is a multi-strategy hedge fund founded in November 2004 by former Goldman Sachs partner Eric Mindich. The firm started new positions in Family Dollar Stores (FDO) , Constellation Brands (STZ), Sotheby’s (BID), […]