What Do Analysts Think About Equinix Inc’s (EQIX) Future?
Equinix Inc (NASDAQ:EQIX)’s impressive earnings growth per share is expected to be a big 233.36% over the next three years. With the recent EPS being $2.731, expected growth will push the upcoming EPS to $9.104. I am going to look at the latest data on EQIX to assess whether this expected growth is reasonable. See our latest analysis for EQIX
What can we expect from Equinix Inc (NASDAQ:EQIX) in the future?
Equinix is poised for extremely high earnings growth in the near future. Expectations from 23 analysts are high, with earnings per share forecasted to rise significantly from todays level of $2.731 to more than double over the next couple of years. During the same time revenue is predicted to grow from $3,883M to $5,593M and net income is predicted to shoot up from $200M to $668M in the next couple of years, more than doubling from the most recent level. Moreover, future margins are predicted to be a respectable 13.61%.
Basis for the growth
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. However, EQIX’s earnings growth in the past couple of years has been negative at -40.60%. Although its past performance illustrates a different picture to earnings growth moving forward, it could also mean EQIX is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
Next Steps:
For EQIX, there are three fundamental aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is EQIX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EQIX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EQIX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
