On Wednesday, RBC Capital Markets updated its outlook on shares of Equinix (NASDAQ:EQIX), a global data center company, lifting its price target to $1,025 from the previous $936 while maintaining an Outperform rating.
The adjustment comes after Equinix reported robust financial outcomes for the third quarter of 2024 and increased its guidance based on year-to-date operational performance and favorable foreign exchange conditions.
The company's consolidated results aligned with RBC's projections and were approximately 2% higher than the consensus estimates among analysts. Equinix's revenues matched RBC's expectations and were slightly above the general market predictions, bolstered by higher-than-anticipated non-recurring revenues.
Equinix's adjusted EBITDA for the quarter was reported at $1,048 million, resulting in a 47.6% margin. This figure surpasses both RBC's and the consensus estimates, which stood at $1,038 million and $1,025 million with margins of 47.2% and 47.5%, respectively.
Moreover, the company's power costs represented about 15% of its revenue in the third quarter, compared to roughly 14% in the second quarter and about 16% in the same period the previous year.
The firm's adjusted funds from operations (AFFO) and AFFO per share reached $866 million and $9.05, respectively, significantly outperforming the consensus estimates, which anticipated $842 million and $8.82 per share. This financial performance and the raised guidance have led to a more optimistic valuation by RBC Capital Markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.