The 10-second takeaway
For the quarter ended Sep. 30 (Q3), 21Vianet Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
21Vianet Group reported revenue of $63.5 million. The six analysts polled by S&P Capital IQ looked for net sales of $62.4 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $41.0 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 $0.15. The five earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.03 for Q3 were 86% lower than the prior-year quarter's $0.22 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 27.9%, 50 basis points better than the prior-year quarter. Operating margin was 5.1%, 130 basis points worse than the prior-year quarter. Net margin was 3.0%, 2,820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $68.6 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $244.2 million. The average EPS estimate is $0.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members out of 32 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 $15.90.
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