GDS Holdings (GDS) Reports Q4 Loss, Lags Revenue Estimates

Core Insights - GDS Holdings reported a quarterly loss of $0.10 per share, outperforming the Zacks Consensus Estimate of a loss of$ 0.27, and showing improvement from a loss of $0.62 per share a year ago, resulting in an earnings surprise of 62.96% [1] - The company posted revenues of$ 368.62 million for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 14.41%, but showed an increase from year-ago revenues of $360.07 million [2] - GDS Holdings shares have increased by approximately 49.8% since the beginning of the year, contrasting with a decline of 4.5% in the S&P 500 [3] Earnings Outlook - The earnings outlook for GDS Holdings is mixed, with the current consensus EPS estimate for the coming quarter at -$ 0.15 on revenues of $445.73 million, and for the current fiscal year at -$ 0.70 on revenues of $1.79 billion [7] - The company has surpassed consensus EPS estimates in all four of the last quarters, indicating a positive trend in earnings performance [2] Industry Context - The Technology Services industry, to which GDS Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]