The 10-second takeaway
For the quarter ended March 31 (Q1), 21Vianet Group met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share contracted.
Margins increased across the board.
21Vianet Group reported revenue of $54.7 million. The four analysts polled by S&P Capital IQ anticipated a top line of $54.5 million on the same basis. GAAP-reported sales were 71% higher than the prior-year quarter's $32.2 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 $0.12. The three earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS were -$0.05 for Q1, versus -$0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 220 basis points better than the prior-year quarter. Operating margin was 9.3%, 170 basis points better than the prior-year quarter. Net margin was -4.7%, 1,260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $57.8 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $246.1 million. The average EPS estimate is $0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members 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 gives 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. 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.