21Vianet Group Inc Earnings: Here’s Why the Stock is Down Now
21Vianet Group Inc (NASDAQ:VNET) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 7.08%.
21Vianet Group Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 58.33% to $0.05 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Rose 33.89% to $76.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: 21Vianet Group Inc reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.08. It beat the average revenue estimate of $76.37 million.
Quoting Management: Mr. Josh Chen, Founder, Chairman and Chief Executive Officer of the Company, stated, “During this quarter we continued to focus on the growth and expansion of our Company as a leading internet infrastructure provider in China, strengthening our foundation for the next stages of growth. In particular, we successfully launched the public preview for Microsoft’s Windows Azure in June and for Office 365 earlier this month, broadening our growth opportunities going forward. In addition, our core IDC business continues to grow with utilization throughout China improving as a result of continued strong demand from our internet and enterprise customers alike. Heading into the second half of 2013, we are confident about our strong growth as we benefit from our expanded network capacity, growing utilization as well as increased breadth of our product and service offerings.”
Key Stats (on next page)…