Equinix (EQIX) is likely to issue guidance in line with estimates when it reports its Q4 results today despite concerns about factors surrounding the company, Oppenheimer said in an earnings preview emailed Wednesday.
According to the firm, the company was facing concerns about its guidance for a host of reasons, including lower electrical power price pass-throughs and foreign currency headwinds.
However, Oppenheimer said it was expecting an in-line guidance thanks to better pricing, as well as channel checks which suggested that bookings had been "strong" the last two quarters.
"Limited supply is driving better pricing with escalators of 4-5% in colocation contracts, up from 2-3% a year ago and flat-to-declining renewal pricing pre-AI," the firm wrote.
According to Oppenheimer, the consensus was for an 8% revenue growth in 2025 and 9.5% growth in adjusted funds from operations with margins up 100 basis points.
"Management usually meets revenue guidance for the full year, as it has a lot of visibility, but beats on margins. The xScale business has been adding to AFFO growth and should start to kick in on revenue," Oppenheimer said.
The firm has outperform rating on the stock with a price target of $950.
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