A month has gone by since the last earnings report for Equinix (EQIX). Shares have added about 1.5% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Equinix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Equinix's Q2 AFFO Beat on Solid Demand, Revenues Rise

Equinix’s second-quarter 2024 AFFO per share of $9.22 surpassed the Zacks Consensus Estimate of $8.82. The figure improved nearly 14.7% from the prior-year quarter.

Results displayed steady growth in colocation and inter-connection revenues on the back of strong demand for digital infrastructure. During the quarter, Equinix’s total interconnections reached 472,300, rising 4% year over year. The company also revised its outlook for 2024.

Total quarterly revenues came in at $2.16 billion, in line with the Zacks Consensus Estimate. The top line increased 6.9% year over year.

Quarter in Detail

Recurring revenues were $2.02 billion, up 5.5% from the year-ago quarter. Our projection for the metric was $2.04 billion. Non-recurring revenues rose 33.7% to $135 million. We estimated the metric to be $118.5 million.

Revenues from the Americas, EMEA and the Asia Pacific rose 8.5%, 4.9% and 6.8% to $966 million, $721 million and $472 million, year over year, respectively.

The adjusted EBITDA came in at $1.04 billion, up 15% year over year. We projected the metric at $1.02 billion. Adjusted EBITDA margin was reported at 48%.

AFFO rose 16.3% to $877 million from the year-ago period.

Equinix spent $45 million on recurring capital expenditure in the second quarter, up 12.5% on a year-over-year basis. Recurring capital expenditure was 2.1% of revenues in the reported quarter. Non-recurring capital expenditure was $603 million, marginally up year over year.

Balance Sheet

Equinix had $6.4 billion of available liquidity as of June 30, 2024. This comprised cash, cash equivalents, its undrawn revolver and approximately $500 million of unsettled at-the-market proceeds. It excludes restricted cash.

Its net leverage ratio was 3.5, and the weighted average maturity was 7.2 years as of June 30, 2024.

2024 Guidance

For the third quarter of 2024, Equinix projects revenues between $2.190 billion and $2.210 billion, implying a 1-2% increase over the prior quarter. The adjusted EBITDA is expected to be in the range of $1.029-$1.049 billion.