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.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is 21Vianet Group on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add 21Vianet Group to My Watchlist.
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 position in any of the stocks mentioned. 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.