Vnet Group Inc Down 4.13% To $1.63 After Earnings Miss

Vnet Group Inc (VNET) said after close Wednesday that it lost $0.48 per share in quarter four 2023. The company reported earnings on an adjusted basis, so it may not be directly comparable to analyst estimates or prior periods.

On the revenue line, the company reported $267.4 million, missing estimates by $11.6 million.

In the same quarter a year ago, the company lost $0.06 per share on revenue of $272.7 million.

The stock is down 4.13% to $1.63 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Vnet Group Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 8, putting Vnet Group Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $1.39 on February 5, 2024 and set a 52-week high on April 3, 2023 at $4.19.

Vnet started as AsiaCloud in 1999, subsequently it moved to the data center business with its first self-developed data center opening in 2010. The company listed (as 21Vianet) on the Nasdaq in April 2011, subsequently changing its name to Vnet Group in 2021. It originally focused on providing data center services such as colocation and cloud services to retail clients in China but added hyperscale customers in 2019 and now counts large Chinese hyperscalers such as Alibaba Cloud, Tencent Cloud, Huawei Cloud and JD Cloud as customers. At the end of December 2021 it had 78,540 self-built cabinets with the majority in Beijing, Shanghai, and the Greater Bay area.