Can 21Vianet Group Beat These Numbers?

Seth Jayson, The Motley Fool
Updated

21Vianet Group (NAS: VNET) is expected to report Q4 earnings on March 5. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict 21Vianet Group's revenues will increase 32.7% and EPS will expand 8.3%.

The average estimate for revenue is $67.0 million. On the bottom line, the average EPS estimate is $0.13.


Revenue details
 Last quarter, 21Vianet Group logged revenue of $63.5 million. 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 details
 Last quarter, non-GAAP EPS came in at $0.14. 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.

Recent performance
 For the preceding 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%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $244.0 million. The average EPS estimate is $0.48.

Investor sentiment
 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 six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six 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 $15.90.

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The article Can 21Vianet Group Beat These Numbers? originally appeared on Fool.com.

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. 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.

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