This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Equinix Exceeds Estimates on Cloud, Networking Growth

Stocks in this article: EQIX FB AMZN GOOG

NEW YORK ( TheStreet) -- Equinix's (EQIX - Get Report) fourth-quarter results beat analysts' expectations, as the data-center company continues its plan to transition into a real estate investment trust (REIT) in the next few years.

Equinix earned 92 cents per share on $506.5 million in revenue for the quarter ending Dec. 31. Discontinued operations accounted for earnings per share of 24 cents. Analysts polled by Thomson Reuters were expecting 62 cents and $505.33 million in revenue.

In an interview with TheStreet, CEO Steve Smith noted Equinix had "really balanced strength around the world," with Europe, Asia and America all performing well. Cloud and networking, two of Equinix's verticals, saw the fastest growth, accounting for 23% of bookings in the quarter, as Long Term Evolution (LTE) networks and Ethernet continues to get pushed around the world. "We had another rock-solid year."

Smith noted that content digital media accounted for 21% of bookings in the quarter, and that includes companies like Amazon (AMZN - Get Report), Google (GOOG), Zynga (FB - Get Report) and Facebook (FB - Get Report).

TheStreet recommended Equinix last year as one of the companies to invest in after Facebook's IPO.

Shares of Equinix soared last year after the company announced plans to convert into a real estate investment trust, and Smith said Equinix is still aiming for a Jan. 1, 2015, conversion date. Smith noted Equinix has submitted the private ruling to the IRS at end of 2012, and with the operational complexities of turning into a REIT, Equinix pushed the date out to 2015 as opposed to 2014.

EQIX Chart EQIX data by YCharts

For the first quarter of 2013, Equinix said it expects revenue to be between $518 million and $522 million, with gross margins between 68% and $69%. Adjusted EBITDA, a key financial metric, is expected to be between $236 million and $240 million. Analysts polled by Thomson Reuters are looking for $524.5 million in revenue for the first quarter.

Equinix also provided full-year revenue guidance, saying it expects sales to be greater $2.2 billion, with gross margins between 68% and 69%. Adjusted EBITDA is expected to be greater than $1.01 billion. Analysts polled by Thomson Reuters are looking for $2.22 billion in revenue for the full year.

Shares of Equinix closed the regular session lower, losing 0.7% to finish at $213.02. The stock is moving higher in extended-hours trading, gaining 2.3%, according to Nasdaq.com.

--Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs