GDS Holdings (GDS) has released its quarterly earnings report for the period ending June 2024. The company reported a loss of $0.18 per share, surpassing the Zacks Consensus Estimate of a loss of $0.25. This represents an earnings surprise of 28% and compares to a loss of $0.18 per share reported in the same quarter a year ago.
GDS Holdings also exceeded revenue expectations, posting revenues of $388.92 million for the quarter, surpassing the Zacks Consensus Estimate by 1.25%. This compares to revenues of $340.91 million in the same quarter last year.
Despite exceeding expectations, GDS Holdings’ stock is currently rated as a ‘Hold’ by the Zacks Rank. This rating is based on mixed earnings estimate revisions for the company. While the company has outperformed the market so far this year, the future performance of the stock will depend heavily on management’s commentary during the earnings call and the sustainability of the current earnings trend.
Investors should also consider the outlook for the Technology Services industry, as it can significantly impact the performance of GDS Holdings stock. The Zacks Industry Rank currently places Technology Services in the top 33% of the 250+ Zacks industries, suggesting a positive outlook for the sector.
Looking ahead, the current consensus EPS estimate for GDS Holdings is -$0.24 on $405.56 million in revenues for the coming quarter. For the current fiscal year, the consensus EPS estimate is -$1.26 on $1.6 billion in revenues. Investors will be closely watching how these estimates evolve in the coming days and weeks.
In addition to GDS Holdings, another company in the Technology Services industry, Braze, Inc. (BRZE), is expected to report its earnings for the quarter ended July 2024 on September 5. Braze is expected to post a quarterly loss of $0.03 per share and revenues of $141.08 million.
Overall, GDS Holdings’ recent earnings report provides mixed signals for investors. While the company exceeded expectations, its stock is currently rated as a ‘Hold’ due to mixed earnings estimate revisions. The future performance of the stock will depend on various factors, including the company’s future earnings expectations, the outlook for the Technology Services industry, and the general market conditions.
