21Vianet Group Misses Where it Counts

21Vianet Group (Nasdaq: VNET  ) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), 21Vianet Group beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share increased.

Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
21Vianet Group logged revenue of $70.8 million. The six analysts polled by S&P Capital IQ expected revenue of $69.9 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $54.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The five earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. Non-GAAP EPS of $0.08 for Q1 were 33% lower than the prior-year quarter's $0.12 per share. GAAP EPS were $0.03 for Q1 versus -$0.05 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.6%, 180 basis points worse than the prior-year quarter. Operating margin was 5.6%, 370 basis points worse than the prior-year quarter. Net margin was 2.7%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $75.6 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $329.0 million. The average EPS estimate is $0.33.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 28 members out of 34 rating the stock outperform, and six members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give 21Vianet Group a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 21Vianet Group is outperform, with an average price target of $13.79.

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