GDS (NASDAQ:GDS) Issues Quarterly Earnings Results, Beats Expectations By $0.70 EPS

GDS (NASDAQ:GDS - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of ($0.22) by $0.70, Zacks reports. GDS had a negative net margin of 35.97% and a negative return on equity of 8.22%. The firm had revenue of $375.14 million for the quarter, compared to analysts' expectations of $2.72 billion. During the same period in the previous year, the company posted ($1.96) earnings per share. GDS's revenue was up 3.6% compared to the same quarter last year. GDS updated its FY 2025 guidance to EPS.

GDS Stock Up 1.2%

Shares of GDS stock traded up $0.34 on Friday, hitting $28.50. 844,079 shares of the company's stock traded hands, compared to its average volume of 2,097,635. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 2.25. The firm's 50-day moving average is $24.71 and its 200 day moving average is $25.91. The stock has a market cap of $5.43 billion, a P/E ratio of -9.34 and a beta of 0.28. GDS has a 52-week low of $7.35 and a 52-week high of $52.50.

Analyst Upgrades and Downgrades

Several research firms have commented on GDS. Raymond James raised GDS from an "outperform" rating to a "strong-buy" rating and set a $53.00 price objective on the stock in a research report on Thursday, March 20th. Citigroup reiterated an "outperform" rating on shares of GDS in a report on Thursday, March 20th. Citizens Jmp raised GDS to a "strong-buy" rating in a research report on Monday, January 27th. Wall Street Zen raised shares of GDS from a "sell" rating to a "hold" rating in a research report on Wednesday. Finally, Daiwa Capital Markets upgraded shares of GDS from a "neutral" rating to a "buy" rating in a research note on Tuesday, February 11th. Two research analysts have rated the stock with a hold rating, five have issued a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Buy" and an average price target of $39.48.

Institutional Investors Weigh In On GDS

Hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada increased its holdings in shares of GDS by 30.7% in the 1st quarter. Royal Bank of Canada now owns 379,289 shares of the company's stock valued at $9,608,000 after acquiring an additional 89,059 shares during the last quarter. NewEdge Advisors LLC bought a new stake in GDS during the first quarter valued at $25,000. Finally, Advisors Asset Management Inc. acquired a new stake in shares of GDS during the first quarter worth $25,000. Institutional investors own 33.71% of the company's stock.

GDS Company Profile

GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services.