Market Overview

GDS Holdings Earnings Preview

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On Monday, November 16, GDS Holdings (NASDAQ: GDS) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, GDS Holdings analysts modeled for a loss of $0.07 per share on sales of $223.82 million. GDS Holdings reported a loss of $0.12 when it published results during the same quarter last year. Sales in that period totaled $149.16 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 41.67% increase for the company. Revenue would be up 50.05% from the same quarter last year. GDS Holdings's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.07 -0.08 -0.52 -0.08
EPS Actual -0.11 -0.10 -0.12 -0.12
Revenue Estimate 192.71 M 175.78 M 1.14 B 149.06 M
Revenue Actual 189.98 M 175.18 M 169.38 M 149.16 M

Stock Performance

Over the last 52-week period, shares of GDS Holdings are up 112.33%.

Do not be surprised to see the stock move on comments made during its conference call. GDS Holdings is scheduled to hold the call at 19:00:00 ET and can be accessed here.

 

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Posted-In: Earnings