Equinix (NASDAQ:EQIX) Posts Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Equinix beat quarterly expectations: The company reported adjusted earnings of $4.83 per share, $0.10 above consensus, while revenue of $2.62 billion also exceeded estimates.
• Shares fell 2.6% to about $1,008 despite the earnings beat. Equinix has a market capitalization of approximately $99.4 billion and trades at a P/E ratio near 69.8.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $1,153.79; recent targets range from $1,015 to $1,235. Insiders have sold more than $12 million of stock over the past 90 days.

Equinix (NASDAQ:EQIX - Get Free Report) announced its earnings results on Wednesday. The financial services provider reported $4.83 earnings per share for the quarter, topping the consensus estimate of $4.73 by $0.10, FiscalAI reports. The business had revenue of $2.62 billion during the quarter, compared to the consensus estimate of $2.59 billion. Equinix had a return on equity of 10.03% and a net margin of 15.07%.

Equinix Trading Down 2.6%

Shares of Equinix stock traded down $26.84 during mid-day trading on Wednesday, hitting $1,008.02. The stock had a trading volume of 726,229 shares, compared to its average volume of 603,097. The firm has a market cap of $99.41 billion, a P/E ratio of 69.76, a price-to-earnings-growth ratio of 1.94 and a beta of 0.98. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.39. The firm has a 50-day moving average of $1,056.26 and a two-hundred day moving average of $991.49. Equinix has a 12-month low of $720.62 and a 12-month high of $1,128.68.

Analysts Set New Price Targets

EQIX has been the topic of several research analyst reports. Mizuho lifted their price objective on Equinix from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a report on Thursday, May 7th. Scotiabank upped their target price on shares of Equinix from $1,050.00 to $1,120.00 and gave the stock a "sector perform" rating in a report on Thursday, April 30th. The Goldman Sachs Group increased their target price on shares of Equinix from $894.00 to $1,015.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Guggenheim reissued a "buy" rating and issued a $1,235.00 price target on shares of Equinix in a research note on Wednesday, May 20th. Finally, Wall Street Zen upgraded shares of Equinix from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Equinix presently has an average rating of "Moderate Buy" and an average target price of $1,153.79.

Insiders Place Their Bets

In other Equinix news, Chairman Charles J. Meyers sold 5,224 shares of the firm's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $1,085.23, for a total transaction of $5,669,241.52. Following the completion of the sale, the chairman owned 7,370 shares of the company's stock, valued at $7,998,145.10. This trade represents a 41.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Brandi Galvin Morandi sold 3,726 shares of Equinix stock in a transaction on Monday, June 8th. The shares were sold at an average price of $1,076.36, for a total value of $4,010,517.36. Following the completion of the sale, the insider owned 6,132 shares in the company, valued at $6,600,239.52. This represents a 37.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 11,115 shares of company stock valued at $12,022,574. 0.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Equinix

A number of hedge funds have recently made changes to their positions in EQIX. Northern Trust Corp lifted its stake in Equinix by 0.6% during the 4th quarter. Northern Trust Corp now owns 1,500,506 shares of the financial services provider's stock worth $1,149,628,000 after acquiring an additional 9,614 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Equinix by 6.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,260,050 shares of the financial services provider's stock worth $965,400,000 after purchasing an additional 74,874 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Equinix by 408.1% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,186,497 shares of the financial services provider's stock valued at $929,312,000 after purchasing an additional 953,001 shares during the period. Morgan Stanley grew its holdings in shares of Equinix by 0.7% in the fourth quarter. Morgan Stanley now owns 948,913 shares of the financial services provider's stock valued at $727,021,000 after purchasing an additional 6,338 shares in the last quarter. Finally, Amundi grew its holdings in shares of Equinix by 13.2% in the fourth quarter. Amundi now owns 842,990 shares of the financial services provider's stock valued at $645,849,000 after purchasing an additional 97,979 shares in the last quarter. Hedge funds and other institutional investors own 94.94% of the company's stock.

Equinix Company Profile

Equinix, Inc is a global provider of digital infrastructure and interconnection services, specializing in carrier-neutral data centers and colocation. The company operates a platform that enables enterprises, cloud and network service providers, and content companies to colocate IT infrastructure, interconnect directly with partners and providers, and access cloud on-ramps and network services in a secure, low-latency environment.

Equinix's offerings include traditional colocation space and power, cross-connects and meet-me rooms, and a suite of connectivity and on-demand services designed for hybrid multicloud architectures.

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