GDS (NASDAQ:GDS) Announces Earnings Results

Key Points

• GDS Holdings Limited reported a quarterly EPS of ($0.06), beating analysts' expectations of ($0.11) by $0.05.
• The company updated its fiscal year 2025 guidance but has a debt-to-equity ratio of 1.62, indicating significant leverage.
• Analyst ratings for GDS show a consensus of "Buy" with a target price of $40.57, highlighting growing investor confidence.

GDS (NASDAQ:GDS - Get Free Report) issued its earnings results on Wednesday. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.05, Zacks reports. The business had revenue of $404.74 million for the quarter, compared to the consensus estimate of $2.83 billion. GDS had a return on equity of 1.40% and a net margin of 40.83%.The company's revenue was up 2.6% compared to the same quarter last year. During the same period last year, the business posted ($1.30) EPS. GDS updated its FY 2025 guidance to EPS.

GDS Stock Performance

NASDAQ GDS traded up $1.51 on Friday, hitting $33.51. 3,167,180 shares of the company traded hands, compared to its average volume of 2,198,125. The business's 50 day moving average price is $33.24 and its 200-day moving average price is $30.22. The company has a market capitalization of $6.39 billion, a price-to-earnings ratio of 9.91 and a beta of 0.33. GDS has a 52-week low of $15.88 and a 52-week high of $52.50. The company has a current ratio of 2.00, a quick ratio of 1.47 and a debt-to-equity ratio of 1.71.

Institutional Investors Weigh In On GDS

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GDS. Canada Pension Plan Investment Board increased its holdings in GDS by 77.7% in the 2nd quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company's stock worth $214,115,000 after acquiring an additional 3,062,658 shares in the last quarter. Lighthouse Investment Partners LLC purchased a new stake in GDS in the 2nd quarter worth approximately $3,821,000. Royal Bank of Canada increased its holdings in GDS by 30.7% in the 1st quarter. Royal Bank of Canada now owns 379,289 shares of the company's stock worth $9,608,000 after acquiring an additional 89,059 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in GDS by 12.1% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 601,547 shares of the company's stock valued at $18,389,000 after acquiring an additional 64,913 shares during the period. Finally, Bank of America Corp DE raised its holdings in GDS by 35.4% during the second quarter. Bank of America Corp DE now owns 230,573 shares of the company's stock valued at $7,049,000 after acquiring an additional 60,332 shares during the period. 33.71% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on GDS. JPMorgan Chase & Co. raised GDS from a "neutral" rating to an "overweight" rating and increased their price target for the company from $34.00 to $46.00 in a report on Wednesday, July 16th. Bank of America increased their price target on GDS from $47.60 to $50.60 and gave the company a "buy" rating in a report on Friday. Daiwa Capital Markets reissued a "buy" rating on shares of GDS in a report on Wednesday, May 28th. BMO Capital Markets raised GDS to a "market perform" rating in a report on Wednesday, July 16th. Finally, Wall Street Zen raised GDS from a "sell" rating to a "hold" rating in a report on Wednesday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $46.93.

About GDS

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.