Benzinga | May 18, 2021 10:07AM EDT

Earnings Outlook For GDS Holdings

On Wednesday, May 19, GDS Holdings (NASDAQ:GDS) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see GDS Holdings reporting a quarterly loss of $0.09 per share on sales of $269.08 million. In the same quarter last year, GDS Holdings reported a loss per share of $0.1 on revenue of $175.18 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be up 10.0%. Revenue would be up 53.6% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.16 -0.07 -0.07 -0.08EPS Actual -0.26 -0.21 -0.11 -0.10Revenue Estimate 251.27 M 224.21 M 192.71 M 175.78 MRevenue Actual 250.05 M 224.57 M 189.98 M 175.18 M

Stock Performance

Shares of GDS Holdings were trading at $76.2 as of May 17. Over the last 52-week period, shares are up 24.65%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. GDS Holdings is scheduled to hold the call at 20:00:00 ET and can be accessed here.