Yesterday afternoon, Equinix (NASDAQ:EQIX, news, filings) put forth its Q3 numbers and offered projections for 2012 as well. Revenues were slightly above the guided range and analyst expectations, as was Adusted EBITDA, however earnings per share fell short of projections as interest expenses were up sharply. Guidance was raised for the fourth quarter. Here’s a quick summary of Equinix’s numbers in the context of the past four quarters:
| $ in millions | Q3/10 | Q4/10 | Q1/11 | Q2/11 | Q3/11 | Q4/11
(guidance) |
FY/12
(guidance) |
|---|---|---|---|---|---|---|---|
| – Recurring | 314.7 | 326.3 | 343.9 | 376.5 | 397.4 | ||
| – Non-recurring | 15.6 | 18.9 | 19.1 | 18.4 | 20.2 | ||
| Revenues | 330.3 | 345.2 | 363.0 | 394.9 | 417.6 |
>424.5 | >1870 |
| COS | 185.5 | 193.6 | 194.6 | 215.6 | 228.2 | ||
| SG&A | 89.8 | 96.3 | 97.1 | 102.7 | 109.0 | ||
| Adjusted EBITDA | 146.5 | 148.9 | 167.3 | 181.3 | 191.6 | >189.8 | >850 |
| Earnings Per Share | 0.24 | 0.29 |
0.53 | 0.64 |
0.20 | ||
| Ongoing Capex | 40.7 | 32.4 | 32.7 | 28.0 | 26.6 | ~28 | 120 |
| Expansion Capex | 103.2 | 111.0 | 139.8 | 160.9 | 104.9 | 124-144 | 580-680 |
The stock was down after hours, however, which some attributed to the company’s capex guidance for 2012 being so high. While that may keep free cash flow down, what this suggests to me is that opportunities for further buildouts are just lining up for Equinix right now. They’re simply planning to follow through on them, re-investing that cash into future growth. That would be inline with the recent Telegeography report, which suggested that demand has been outstripping supply for colo space despite all the construction that has been going on.
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