Why 21Vianet Group Dropped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of 21Vianet Group (NAS: VNET) have dropped by as much as 17% today before recouping most of those losses after the company reported earnings.

So what: First-quarter revenue came out to $55 million, with adjusted net income of $6 million, or $0.12 per share. Those results were right about on target with what the Street was expecting, with 21Vianet topping expectations by a hair.


Now what: CEO Josh Chen said the company increased capacity utilization to 82% to meet demand in the coming quarters, and the company's plans to expand its data centers remains on track. 21Vianet also provided second quarter guidance (in local currency), expecting revenue to be between 364 million yuan to 370 million yuan. For context, the just-closed quarter's revenue was 345.8 million yuan before converting to dollars.

Interested in more info on 21Vianet Group? Add it to yourWatchlist.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners