GDS (NASDAQ:GDS) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

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. GDS had a return on equity of 1.40% and a net margin of 40.83%.The business had revenue of $404.74 million for the quarter, compared to the consensus estimate of $2.83 billion. During the same period last year, the business posted ($1.30) EPS. The company's revenue was up 2.6% compared to the same quarter last year. GDS updated its FY 2025 guidance to EPS.

GDS Price Performance

NASDAQ:GDS traded down $0.41 on Monday, reaching $33.10. 685,659 shares of the company's stock traded hands, compared to its average volume of 2,767,754. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 1.71. GDS has a 12 month low of $15.88 and a 12 month high of $52.50. The stock has a 50-day simple moving average of $33.24 and a 200-day simple moving average of $30.25. The firm has a market cap of $6.31 billion, a PE ratio of 9.80 and a beta of 0.33.

Institutional Trading of GDS

Several institutional investors have recently made changes to their positions in the business. Headlands Technologies LLC grew its position in shares of GDS by 218.2% during the second quarter. Headlands Technologies LLC now owns 46,386 shares of the company's stock worth $1,418,000 after purchasing an additional 31,810 shares in the last quarter. BROOKFIELD Corp ON purchased a new stake in shares of GDS during the second quarter worth about $157,000. Boothbay Fund Management LLC purchased a new stake in shares of GDS during the second quarter worth about $846,000. Bank of America Corp DE grew its position in shares of GDS by 35.4% during the second quarter. Bank of America Corp DE now owns 230,573 shares of the company's stock worth $7,049,000 after purchasing an additional 60,332 shares in the last quarter. Finally, Lighthouse Investment Partners LLC purchased a new stake in shares of GDS during the second quarter worth about $3,821,000. Hedge funds and other institutional investors own 33.71% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have commented on GDS. Wall Street Zen upgraded GDS from a "sell" rating to a "hold" rating in a research note on Wednesday, May 21st. JMP Securities increased their target price on GDS from $40.00 to $50.00 and gave the company a "market outperform" rating in a research note on Thursday. Daiwa Capital Markets reiterated a "buy" rating on shares of GDS in a research note on Wednesday, May 28th. 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. Finally, JPMorgan Chase & Co. raised GDS from a "neutral" rating to an "overweight" rating and increased their target price for the company from $34.00 to $46.00 in a report on Wednesday, July 16th. Three analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $46.93.

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.