Analyst Note| Matthew Dolgin, CFA |
Equinix again exceeded FactSet consensus revenue and EBITDA estimates in the third quarter, with overseas revenue making up for weaker results in the Americas. Equinix raised 2020 guidance, but it was mostly due to favorable currency expectations and the inclusion of the recently acquired Bell data centers in Canada. Excluding those factors, the firm slightly reduced its 2020 outlook. While the quarter was very strong, and we expect recent performance to be sustainable, the results and guidance, in our view, don’t justify the significant margin expansion Equinix has seen this year, and we are not materially changing our $500 fair value estimate.