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) released its earnings results on Thursday. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03), Zacks reports. VNET Group had a net margin of 0.74% and a return on equity of 0.98%. The firm had revenue of $339.65 million during the quarter, compared to analyst estimates of $2.27 billion. VNET Group updated its FY 2025 guidance to EPS.

VNET Group Stock Performance

Shares of VNET stock traded down $0.08 during trading on Wednesday, hitting $7.74. The company's stock had a trading volume of 1,428,974 shares, compared to its average volume of 7,779,750. The business has a fifty day moving average of $7.60 and a 200-day moving average of $7.81. VNET Group has a 52 week low of $2.10 and a 52 week high of $16.13. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.40. The company has a market cap of $2.08 billion, a PE ratio of -96.56, a P/E/G ratio of 5.45 and a beta of 0.18.

Analyst Ratings Changes

Several research analysts have issued reports on VNET shares. Bank of America lifted their target price on shares of VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a report on Friday, August 22nd. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a report on Saturday. Two equities research analysts have rated the stock with a Strong Buy rating and five have given a Buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $9.96.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its position in VNET Group by 52.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock worth $29,000 after buying an additional 1,426 shares in the last quarter. Headlands Technologies LLC bought a new stake in shares of VNET Group during the second quarter valued at approximately $55,000. Raymond James Financial Inc. purchased a new position in shares of VNET Group during the 2nd quarter valued at $69,000. Quantbot Technologies LP lifted its holdings in VNET Group by 333.0% during the 2nd quarter. Quantbot Technologies LP now owns 18,805 shares of the information technology services provider's stock worth $130,000 after purchasing an additional 14,462 shares in the last quarter. Finally, Orion Porfolio Solutions LLC bought a new position in shares of VNET Group during the 2nd quarter valued at about $140,000. 72.83% of the stock is owned by hedge funds and other institutional investors.

VNET Group announced that its board has authorized a stock buyback plan on Friday, June 27th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the information technology services provider to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is 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.