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Equinix (EQIX) will be reporting 1Q 2009 results on Wednesday, April 22. Its numbers will probably represent a bellwether for the whole colocation sector.

Equinix guidance, given on its last conference call, was forecasting revenues in the range of $198.0 to $200.0 million (consensus is at $ 198.91 million), and EBITDA is expected to be between $86.0 and $88.0 million, with cash gross margins at 63%. The company doesn’t usually issue outlook for EPS, while analysts expect Equinix to earn $ 0.18, with a wide bracket between their numbers, ranging from $ 0.06 to $ 0.29.

The company is also expected to spend a large part of its forecasted 2009 CAPEX in the quarter, with capital expenditures expected to be between $ 100.0 and $ 110.0 million, including $ 20.0 million of ongoing CAPEX.

This quarter should not see a strong impact from currency fluctuations (which we expect just slightly negative for the Euro and the British Pound) like in the 4Q 2008, when the European subsidiary grew on a same currency basis 11%, although it showed a 4.6% decline in US currency.

We also take the opportunity to resume the guidance issued for the whole year, as the wording of the P/R announcing the conference call (the company will discuss first quarter results … and outlook for the second quarter and full year 2009) seems to suggest the intention to update or narrow full year outlook:

• For the full year of 2009, total revenues are expected to be in the range of $855.0 to $875.0 million. Total year cash gross margins are expected to be approximately 63%. Cash selling, general and administrative expenses are expected to be in the range of $160.0 to $170.0 million. Adjusted EBITDA for the year is expected to be between $365.0 and $385.0 million. Capital expenditures for 2009 are expected to be in the range of $325.0 to $375.0 million, comprised of approximately $60.0 million of ongoing capital expenditures and $265.0 to $315.0 million of expansion capital expenditures.

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This entry was posted on Tuesday, April 21st, 2009 at 11:22 am and is filed under Low Latency. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.