21Vianet Group Beats Up on Analysts Yet Again

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21Vianet Group (NAS: VNET) reported earnings on May 16. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Over the decades, small-cap stocks like 21Vianet Group have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published 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 ofMotley 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.

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