Tuesday, February 15, 2011

Equinix: Solid Quarter, Expecting Increased Guidance

full article at Seeking Alpha:

>>We see what the company reiterated as guidance for 2011 as a floor, and given the fact that historically the company has always been conservative (guide and beat), we expect a new guidance after Q1, in the more traditional revenue range.

If we consider the midpoint of management's Q1 2011 forecast ($ 355 million), and assume no further growth (with additional sales just balancing churn, expected at 2% per quarter), Equinix is already supposed to hit $ 1,420 million for the year. With good inventory available, and increased expansion capex forecasted in 2011 due to more expansion needed, we believe the company is just waiting for more data before translating these expectations into an increased but reachable target.

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