GDS Holdings posts earnings beat, revenue in line with estimates
Chinese data center operator GDS Holdings reported a per-share profit above forecasts, while revenue matched analyst expectations for the quarter.
GDS Holdings Ltd. reported earnings per American Depositary Share (ADS) of ¥0.36 for the most recent quarter, exceeding market estimates by ¥0.06 per share.
Revenue for the period totaled ¥2.45 billion, aligning with consensus projections from analysts surveyed by Reuters. The company, which operates data centers across China, did not provide forward guidance in its earnings release.
Net income for the quarter rose 12% year-over-year to ¥342 million, driven by higher cloud and colocation service demand. Operating expenses increased 8% sequentially, primarily due to expansion in new facilities.
GDS Holdings has been expanding capacity in major Chinese cities, including Beijing, Shanghai and Shenzhen, to meet growing demand from domestic and multinational clients. The company’s shares were up 2.1% in pre-market trading following the results.
Analysts at CICC maintained a neutral rating on the stock, citing valuation concerns despite the earnings beat. The company’s ADSs trade on the Nasdaq under the ticker GDS.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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