The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 21Vianet Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins increased.
21Vianet Group notched revenue of $67.1 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $67.0 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $50.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The six earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. Non-GAAP EPS of $0.11 for Q4 were 8.3% lower than the prior-year quarter's $0.12 per share. GAAP EPS of $0.12 for Q4 were much higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.2%, 50 basis points worse than the prior-year quarter. Operating margin was 3.7%, 510 basis points worse than the prior-year quarter. Net margin was 10.2%, 930 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.8 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $341.4 million. The average EPS estimate is $0.72.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 26 members out of 31 rating the stock outperform, and five members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give 21Vianet Group a green thumbs-up, and 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 $15.33.
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