After a rare faltering step last quarter, Equinix turned in a third quarter earnings report that puts them back on their growth track. Revenues came in just a hair above the midpoint of guidance and slightly above analyst projections, while diluted earnings per share were $0.14 above the street’s estimates. Here’s a quick table of their results in some context:
| $ in millions for continuing operations |
Q3/12 | Q4/12 | Q1/13 | Q2/13 | Q3/13 | Guidance |
|---|---|---|---|---|---|---|
| – Recurring | 462.8 | 481.7 | 495.3 | 502.5 | 517.0 | |
| – Non-recurring | 25.9 | 24.8 | 24.2 | 23.2 | 23.5 | |
| Revenues | 488.7 | 506.5 | 519.8 | 525.7 | 540.5 | Q4: 559-563, 2013:2145-2149 |
| Cash COS | 158.0 | 159.0 | 162.8 | 169.1 | 174.8 | |
| Cash SG&A | 102.4 | 108.3 | 113.2 | 112.4 | 120.5 | Q4:123-128, 2013:470-475 |
| Adjusted EBITDA | 228.3 | 239.3 | 243.5 | 244.2 | 245.2 | Q4:255-259, 2013:980-992 |
| Earnings Per Share | 0.58 | 0.68 | 0.71 | 0.58 | 0.72 | |
| Ongoing Capex | 37.6 | 43.5 | 34.0 | 40.2 | 41.0 | Q4:50, 2013:165 |
| Expansion Capex | 174.5 | 166.9 | 41.7 | 82.7 | 130.0 | Q4:140-160, 2013:395-415 |
The quarter’s revenue performance was enough to let Equinix boost its full year guidance slightly, while the continued expenses associated with the REIT conversion process held down EBITDA and will continue to do so in Q4. Everything’s still on track on that front, according to the company.
Meanwhile, Equinix has brought in Ihab Tarazi as its new Chief Technology Officer. Tarazi had been VP of Enterprise Network Services over at Verizon and recently served as chairman of the Metro Ethernet Forum. He’ll be responsible for keeping Equinix at the forefront of the cloud revolution, which continues to wash over the industry.
The market seems happy with the results, or at least quite a bit more happy then they’ve been with the company in a while given the five month skid the stock price has been on.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!
Categories: Cloud Computing · Datacenter · Financials · Jobs
Join Our LinkedIn Group
what is the distinction for “ongoing” capex vs “expansion” capex? would “expansion” capex be a one-time event or could it be reported as expansion one-quarter and then ongoing in a subsequent quarter?