Analysts Estimate GDS Holdings (GDS) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates GDS Holdings to report a year-over-year decline in earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1] Group 1: Earnings Expectations - GDS Holdings is expected to report a quarterly loss of $0.25 per share, reflecting a year-over-year change of -38.9% [2] - Revenues are projected to be $382.28 million, which is a 12.1% increase from the same quarter last year [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 1.43% lower in the last 30 days, indicating a reassessment by analysts [3] - A positive Earnings ESP of +12% suggests that analysts have recently become more optimistic about the company's earnings prospects [6][7] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading can predict an earnings beat, especially when combined with a strong Zacks Rank [5] - GDS Holdings currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat conclusively [7] Group 4: Historical Performance - In the last reported quarter, GDS Holdings was expected to post a loss of $0.33 per share but actually reported a loss of $0.27, resulting in a surprise of +18.18% [8] - Over the past four quarters, the company has beaten consensus EPS estimates three times [8] Group 5: Market Sentiment - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [9] - GDS Holdings does not appear to be a compelling earnings-beat candidate, suggesting that investors should consider additional factors before making decisions [9]