Are You Expecting This from 21Vianet Group?

21Vianet Group (Nasdaq: VNET  ) is expected to report Q3 earnings on Nov. 15. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict 21Vianet Group's revenues will grow 51.1% and EPS will wither -20.0%.

The average estimate for revenue is $62.2 million. On the bottom line, the average EPS estimate is $0.12.

Revenue details
Last quarter, 21Vianet Group booked revenue of $57.2 million. GAAP reported sales were 61% higher than the prior-year quarter's $35.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.11. GAAP EPS were $0.05 for Q2 against -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 28.4%, 160 basis points better than the prior-year quarter. Operating margin was 8.4%, 90 basis points better than the prior-year quarter. Net margin was 4.9%, 1,770 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $243.0 million. The average EPS estimate is $0.46.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 28 members out of 33 rating the stock outperform, and five members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give 21Vianet Group a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 21Vianet Group is outperform, with an average price target of $17.33.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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