GDS Holdings (GDS) got here out with a quarterly lack of $0.26 per share versus the
GDS Holdings (GDS) got here out with a quarterly lack of $0.26 per share versus the Zacks Consensus Estimate of a lack of $0.13. This compares to lack of $0.12 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -100%. 1 / 4 in the past, it was anticipated that this firm would put up a lack of $0.11 per share when it truly produced a lack of $0.21, delivering a shock of -90.91%.
During the last 4 quarters, the corporate has not been in a position to surpass consensus EPS estimates.
GDS Holdings, which belongs to the Zacks Expertise Providers business, posted revenues of $250.05 million for the quarter ended December 2020, surpassing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $169.38 million. The corporate has topped consensus income estimates 3 times over the past 4 quarters.
The sustainability of the inventory’s speedy worth motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
GDS Holdings shares have misplaced about 4.9% for the reason that starting of the 12 months versus the S&P 500’s achieve of three.2%.
What’s Subsequent for GDS Holdings?
Whereas GDS Holdings has underperformed the market up to now this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis reveals a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score instrument just like the Zacks Rank, which has a formidable monitor file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for GDS Holdings was unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the entire record of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is -$0.08 on $276.79 million in revenues for the approaching quarter and -$0.19 on $1.24 billion in revenues for the present fiscal 12 months.
Buyers needs to be aware of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Expertise Providers is presently within the backside 24% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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