VNET Group (NASDAQ:VNET) Announces Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• VNET Group reported a quarterly loss of $0.08 per share, missing analysts’ $0.06 loss estimate by $0.02, while revenue of $409.0 million exceeded expectations of $401.77 million.
• The company remains financially challenged, with a negative net margin of 22.01%, negative return on equity of 31.59%, and debt-to-equity ratio of 3.99.
• Shares rose 4.2% despite the earnings miss. Analysts maintain a “Moderate Buy” consensus with an average price target of $17.40, although some firms have issued sell ratings.

VNET Group (NASDAQ:VNET - Get Free Report) released its quarterly earnings data on Tuesday. The information technology services provider reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.02), FiscalAI reports. The firm had revenue of $409.00 million for the quarter, compared to analyst estimates of $401.77 million. VNET Group had a negative net margin of 22.01% and a negative return on equity of 31.59%.

VNET Group Stock Up 4.2%

Shares of NASDAQ VNET opened at $7.92 on Tuesday. VNET Group has a 52-week low of $6.17 and a 52-week high of $14.48. The company has a debt-to-equity ratio of 3.99, a quick ratio of 0.99 and a current ratio of 0.99. The business has a fifty day moving average of $7.88 and a two-hundred day moving average of $9.25. The stock has a market cap of $2.14 billion, a PE ratio of -5.78 and a beta of 0.32.

Insider Buying and Selling at VNET Group

In related news, Director Sean Shao sold 60,000 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $1.71, for a total transaction of $102,600.00. Following the completion of the sale, the director owned 983,820 shares in the company, valued at $1,682,332.20. This trade represents a 5.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 12.10% of the company's stock.

Hedge Funds Weigh In On VNET Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hsbc Holdings PLC grew its stake in VNET Group by 46.0% during the fourth quarter. Hsbc Holdings PLC now owns 1,293,571 shares of the information technology services provider's stock worth $10,944,000 after buying an additional 407,517 shares during the last quarter. Virtu Financial LLC bought a new stake in VNET Group during the 4th quarter worth approximately $157,000. Trexquant Investment LP bought a new stake in VNET Group during the 4th quarter worth approximately $1,964,000. BTG Pactual Asset Management US LLC acquired a new stake in VNET Group during the 4th quarter valued at $254,000. Finally, Farallon Capital Management LLC increased its holdings in VNET Group by 14.5% during the 4th quarter. Farallon Capital Management LLC now owns 6,285,386 shares of the information technology services provider's stock valued at $53,174,000 after purchasing an additional 796,266 shares in the last quarter. 72.83% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

VNET has been the subject of several recent research reports. Morgan Stanley reissued an "overweight" rating and issued a $16.00 target price on shares of VNET Group in a research report on Wednesday, May 27th. Bank of America set a $16.30 price target on shares of VNET Group and gave the company a "buy" rating in a report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft initiated coverage on VNET Group in a report on Tuesday, July 7th. They issued a "buy" rating and a $12.50 target price for the company. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of VNET Group in a research note on Wednesday, July 15th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, VNET Group presently has a consensus rating of "Moderate Buy" and an average target price of $17.40.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company's product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.

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