The data solutions provider 21Vianet Group Inc. (VNET) was up 0.32 percent to $27.85 on Thursday.
21Vianet posted strong revenues in the third quarter after which its stock price surged more than 20 percent on last Wednesday. But over the past week company came losing more than 7 percent to settle at current level.
The third-quarter revenue of 21Vianet rose year-on-year by 27 percent to 1.25 billion yuan, equivalent to around $183.5 million. Earnings per share of $0.02 were higher than the estimates of Wall Street analysts, who predicted a $0.03 loss per share.
During the quarter, the total number of telecommunications cabinets operated by 21Vianet increased from 7426 to 51476. The average monthly revenue per telecom cabinet increased to 9,074 yuan.
Overall, the management of 21Vianet is optimistic about the performance of the quarter and notices a continuing increase in margins. The company also expects that the strong trends will continue, so they are focused on the growth of annual sales by 26-27 percent.
At the end of the second quarter, 21Vianet announced the closing of Blackstone’s $150 million investment. This was a major achievement for 21Vianet and helped in the same quarter to offset EPS losses. Another $350 million was recently raised by the company through the sale of 17 million shares. The optimistic outlook for 21Vianet is backed by this active fundraising. As demand for data centers remains high amid digital transformation in the corporate sector and manufacturing, the company’s business looks good.
21Vianet offers services to the data centre that are separate from the carrier. The business hosts its customers’ servers and network equipment, and offers connectivity that allows customers to deliver data over the Internet.
21Vianet Group Inc. (VNET) stock has added 284 percent since
beginning of the year and its market capitalization as on December 3 stands at