Digital infrastructure company Equinix (NASDAQ:EQIX), which specializes in data centers, delivered strong earnings in the fourth quarter. The company’s fourth-quarter revenue of $2.1 billion came roughly in line with the Street’s forecast and increased by 2.4% year-over-year. At the same time, its EPS jumped about 73% year-over-year to $2.4, exceeding analysts’ average estimate of $2.17.
Notably, the company registered a 13% year-over-year increase in its top line for 2023. The company expects its sales momentum to be sustained in 2024. What stands out is that EQIX achieved 21 years of consecutive quarterly revenue growth. The stock gained about 2% in the pre-market session on Thursday, February 15.
Equinix Expects Continued Sales Growth Ahead
As for 2024, Equinix expects its top line to be in the range of $8.793 – $8.893 billion, up 7% to 9% year-over-year. Strong underlying demand for digital infrastructure will likely support its top-line growth.
Further, adjusted EBITDA is forecasted to be $4.089 to $4.169 billion, up 10 to 13% over the prior year quarter. Analysts expect EQIX to post adjusted EBITDA of $4.05 billion in 2024. Moreover, its Adjusted Funds From Operations (AFFO) are projected to be between $3.306 and $3.376 billion, up 9-12%.
Is Equinix a Good Stock to Buy?
Equinix stock gained 16.8% in one year. Further, Wall Street analysts remain cautiously optimistic about EQIX stock.
It has received 11 Buy and five Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $881.71 implies 5.87% upside potential from current levels.
