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InterXion (NYSE:INXN), one of the leading European providers of network-neutral data center services, will be reporting Q2 earnings tomorrow morning, Wednesday July 17, before the market open.

Analysts expect, on average, revenue of € 59.83 million and EPS of € 0.07. The company doesn't issue quarterly guidance, but on the occasion of the last conference call it reaffirmed its yearly forecast for revenue expected to be in the range of €239 to €245 million and adjusted EBITDA in the range of €91 to €95 million. CapEx for 2011, is expected to be between €140 and €160 million.

Recent reports from its main competitors, TeleCity Group (OTCPK:TLEIY) and Equinix (NASDAQ:EQIX) were quite positive, as the market for network-neutral data center is still seen as strong in Europe, with solid pricing.

Based on this assumption, Barclays recently reiterated its “overweight” rating on the company, with a target price of $18:

We believe colocation pricing in Europe remains on a firm footing based on recent Equinix and Telecity results. The recent acquisition of Telx is unlikely to alter Telx's strategic alliance with INXN, as the new owners will continue to benefit from InterXion's European footprint, and vice versa. We expect INXN to remain focused on growth as guidance suggests a significant 2Q-4Q capex ramp. We believe shares trade at attractive levels vs. peers on an EV/EBITDA basis with a 4x and 1.4x discount to Telecity and Equinix, respectively, on 2012E EBITDA.

If we look at InterXion's most recent quarters, the company has shown a steady growth, both in revenue and adjusted EBITDA, as you can see from the attached, interactive spreadsheets that you can also download at this link.

In particular, the company has been able to improve its adjusted EBITDA margins from 34.9% in Q1 2009 to over 38% in the last three quarters – as you can see in the third sheet.

Some other metrics that will be worth keeping an eye on are the utilization rate, that has steadily been over 70% since 2009, and how the company will be able to cope with expected demand and increase the equipped space, that was at about 61,000 sq.mt. at the end of Q1.


Disclosure: I am long EQIX, INXN.