Datacenter Operator GDS Holdings' Q3 Revenue Grows 6.4% But Falls Short of Expectations
Portfolio Pulse from Anusuya Lahiri
GDS Holdings Ltd (NASDAQ:GDS) reported Q3 FY23 revenue of $345.26 million, a 6.4% increase year-over-year but below the consensus estimate of $351.73 million. Loss per ADS was $(0.32), worse than the expected $(0.28). The company saw growth in service revenue and committed area, but a decline in adjusted EBITDA margin due to higher utility costs. Despite reaffirming its FY23 outlook, the stock dropped 6.80% to close at $10.97, reflecting a 54% YTD loss.
November 22, 2023 | 1:58 pm
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NEGATIVE IMPACT
GDS Holdings reported lower-than-expected Q3 revenue and a higher loss per ADS, leading to a 6.80% drop in stock price to close at $10.97.
The reported earnings miss and higher loss per ADS are negative indicators for investor confidence and can lead to bearish sentiment in the short term. The reaffirmed FY23 outlook may provide some stability, but the significant YTD loss and recent price action suggest a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100