What happened
Shares of 21Vianet Group (VNET 1.36%), a China-based data center company, soared on Wednesday. The stock was up 26.6% at one point but finished the trading day up 20.4%.
The stock's big gain followed 21Vianet's third-quarter results. Shares are likely trading higher on investor optimism regarding the company's better-than-expected profitability.
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So what
The tech company's third-quarter revenue jumped 27% year over year to RMB 1.25 billion, or the equivalent of about $183.5 million. Though this was below analysts' average forecast for revenue of $188.3 million, the company's earnings per share of $0.02 beat a consensus forecast of a loss per share of $0.03.
"We concluded the third quarter of 2020 with solid financial results as our revenues were within our previous guidance range and our adjusted EBITDA exceeded the high end of our guidance range," explained CFO Sharon Liu in the company's earnings release. "In the meantime, we also continued to improve our margins. Our strong financial growth reflects both our continuous cabinet expansion and improved utilization rates."
Now what
Management expects strong momentum to persist, with 21Vianet guiding for full-year revenue to rise 26% to 27% year over year.
"Going forward, we remain confident in our ability to reach our development goals, continue increasing our market share, and deliver lasting value to our shareholders in turn," said Liu.
