VNET Group (NASDAQ:VNET) Announces Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• VNET Group reported an earnings per share of (-$0.01), missing estimates by ($0.03). Revenue for the quarter was $339.65 million, significantly below the projected $2.27 billion.
• Following the earnings announcement, VNET Group's stock dropped 8.0%, with shares trading at $7.34.
• Institutional investors have increased their positions in VNET Group, with hedge funds owning 72.83% of the stock as they look to take advantage of potential for future growth.

VNET Group (NASDAQ:VNET - Get Free Report) posted its earnings results on Thursday. The information technology services provider reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.03), Zacks reports. The firm had revenue of $339.65 million during the quarter, compared to analyst estimates of $2.27 billion. VNET Group had a net margin of 1.66% and a return on equity of 2.11%. VNET Group updated its FY 2025 guidance to EPS.

VNET Group Stock Down 8.0%

Shares of NASDAQ:VNET opened at $7.34 on Friday. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 2.34. VNET Group has a 52-week low of $1.85 and a 52-week high of $16.13. The stock's fifty day simple moving average is $7.45 and its 200-day simple moving average is $7.83. The company has a market capitalization of $1.97 billion, a P/E ratio of -734.00, a P/E/G ratio of 4.35 and a beta of 0.18.

Institutional Trading of VNET Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its position in shares of VNET Group by 52.2% in the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock valued at $29,000 after acquiring an additional 1,426 shares in the last quarter. Headlands Technologies LLC purchased a new stake in shares of VNET Group in the second quarter valued at $55,000. Raymond James Financial Inc. purchased a new stake in shares of VNET Group in the second quarter valued at $69,000. Quantbot Technologies LP lifted its position in shares of VNET Group by 333.0% in the second quarter. Quantbot Technologies LP now owns 18,805 shares of the information technology services provider's stock valued at $130,000 after acquiring an additional 14,462 shares in the last quarter. Finally, Orion Porfolio Solutions LLC purchased a new stake in shares of VNET Group in the second quarter valued at $140,000. 72.83% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised VNET Group from a "sell" rating to a "hold" rating in a report on Sunday, July 13th. Two research analysts have rated the stock with a Strong Buy rating and four have given a Buy rating to the stock. Based on data from MarketBeat.com, VNET Group currently has an average rating of "Buy" and a consensus price target of $9.30.

VNET Group announced that its Board of Directors has initiated a stock buyback plan on Friday, June 27th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the information technology services provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

About VNET Group

VNET Group, Inc, an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet.

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