Stock to Keep Your Eyes on: Workday, Inc. (WDAY)

Workday, Inc. (WDAY) reported earnings for the three months ended April 2016 on May 31, 2016. The company earned $0.05 per share on revenue of $345.43M. Analysts had been modeling earning per share of $-0.02 with $338.68M in revenue.

Workday, Inc. (NYSE: WDAY), a leader in enterprise cloud applications for finance and human resources, announced results for the fiscal first quarter ended April 30, 2016.

  • Total revenues were $345.4 million, an increase of 38% from the first quarter of fiscal 2016. Subscription revenues were $280.0 million, an increase of 39% from the same period last year.
  • Operating loss was $73.6 million, or negative 21% of revenues, compared to an operating loss of $53.4 million, or negative 21% of revenues, in the same period last year. Non-GAAP operating profit for the first quarter was $11.1 million, or 3% of revenues, compared to a non-GAAP operating loss of $2.1 million last year, or negative 0.8% of revenues.1
  • Net loss per basic and diluted share was $0.41, compared to a net loss per basic and diluted share of $0.33 in the first quarter of fiscal 2016. Non-GAAP net income per diluted share was $0.05, compared to a non-GAAP net loss per basic and diluted share of $0.02 for the same period last year.1
  • Operating cash flows for the first quarter were $161.5 million and free cash flows were $127.0 million. For the trailing twelve months, operating cash flows were $327.9 million and free cash flows were $188.1 million.2
  • Cash, cash equivalents and marketable securities were approximately $2.1 billion as of April 30, 2016. Unearned revenues were $926.1 million, a 42% increase from last year.

“We delivered great results and growth across all of our products in the first quarter,” said Aneel Bhusri, co-founder and CEO, Workday. “We continue to see increased customer adoption of Workday Financial Management as well as strong demand in EMEA and APJ as more organizations take finance and HR to the cloud. We are on track to deliver innovative new products — Workday Planning, Workday Learning, and Workday Student — later this year, which we believe will accelerate our momentum based on extremely positive customer feedback and interest.”

“We started fiscal 2017 with strong first quarter results,” said Robynne Sisco, chief financial officer, Workday. “We generated record quarterly revenues as well as strong billings growth and trailing twelve month operating cash flows. Looking ahead, we anticipate second quarter total revenues to be within a range of $371 to $373 million or growth of 31% to 32% as compared to the prior year.”

Recent Highlights

  • Workday announced the general availability of Workday Payroll for France as part of its latest feature release, Workday 26. The new application builds on the success of Workday Payroll for the U.S., Workday Payroll for Canada, and Workday Payroll for the UK by enabling organizations with employees in France to streamline the payroll process and address the full spectrum of enterprise payroll needs.
  • Additionally in Workday 26, Workday announced the general availability of new finance- and workforce-related scorecards and dashboards to help customers harness the power of real-time transactional data and predictive analytics to make smarter decisions that will help them better manage their finances, people, and projects.
  • To support continued customer demand globally, Workday announced it has expanded operations to support businesses headquartered in Spain, and has opened a new office in Madrid.
  • Workday announced the appointment of Diana McKenzie as the company’s chief information officer (CIO) as well as the promotion of Robynne Sisco to chief financial officer (CFO). Both Diana and Robynne report to Workday Co-President Mark Peek.

Workday, Inc. earnings per share showed a decreasing trend of -13% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 30%.Analysts project EPS growth over the next 5 years at 38.33%. It has EPS annual decline over the past 5 fiscal years of -50.6% when sales grew 175.8. It reported 37.6% sales growth, and -26.2% EPS decline in the last quarter.

The stock is trading at $80.33, up 69.76% from 52-week low of $47.32. The stock trades down -6.23% from its peak of $85.67 and % below the consensus price target of $79.4. Its volume clocked up at 1.02 million shares which is lower than the average volume of 1.63 million shares. Its market capitalization currently stands at $15.41B.

Worth Watching Stock: Ascena Retail Group Inc. (NASDAQ:ASNA)

Ascena Retail Group Inc. (NASDAQ:ASNA) reported earnings for the three months ended April 2016 on May 31, 2016. The company earned $0.15 per share on revenue of $1.67B. Analysts had been modeling earning per share of $0.13 with $1.73B in revenue.

ascena retail group, inc. (ASNA) reported financial results for its fiscal third quarter ended April 23, 2016. All adjusted results throughout this release include the results of ANN INC. (“ANN“) in both the current and prior-year periods. Reference should be made to the notes to the accompanying unaudited condensed consolidated financial information for a discussion of theANN acquisition and the use of Non-GAAP financial measures.

For the third quarter of Fiscal 2016, the Company reported earnings of $0.08 per diluted share compared to earnings of $0.15 per diluted share in the same period of Fiscal 2015. The decrease was primarily due to integration costs, interest expense incurred under the $1.8 billion term loan and the effect of non-cash purchase accounting adjustments, all of which were related to the acquisition of ANN, which closed during the first quarter of Fiscal 2016. Also contributing to the year-over-year decline was an increase in the provision for income taxes. For the third quarter of Fiscal 2016, the Company reported adjusted earnings of $0.15 per diluted share. This compares to earnings of $0.16 per diluted share in the same period of Fiscal 2015.

David Jaffe, President and Chief Executive Officer of ascena retail group, inc., commented, “We continued to make progress in the third quarter with key catalysts in our business. The turnaround atJustice is progressing as planned, with improved performance versus last year driven by continued strength in gross margin rate. Our integration of ANN is progressing well, and we remain confident in our $235 million target for deal synergies and cost savings by the end of Fiscal 2018. I am especially pleased with the product-driven strength we have seen at LOFT, which was a bright spot in the quarter.”

Jaffe continued, “At the same time, the environment this Spring has been challenging. After the disruption of a warm holiday season, we’ve had to contend with an unseasonably cold spring and resulting elevated traffic headwinds. While I think we have managed the business well, particularly with respect to inventory levels, we were not able to fully mitigate these challenges. Our earnings exceeded the upper end of our guidance range for the third quarter, but I’ll note that performance benefited from some favorable expense timing that offset softer than expected top-line performance. These expenses will come back in the fourth quarter, and combined with the traffic challenges we’ve seen continue through May, we’ve adjusted our earnings outlook downward.”

Ascena Retail Group Inc. earnings per share showed a decreasing trend of -274% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 84%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual decline over the past 5 fiscal years of -29.8% when sales grew 15.1. It reported 45.1% sales growth, and -45.9% EPS decline in the last quarter.

The stock is trading at $7.12, up 12.48% from 52-week low of $6.33. The stock trades down -59.52% from its peak of $17.35 and % below the consensus price target of $11.58. Its volume clocked up at 3.41 million shares which is higher than the average volume of 2.83 million shares. Its market capitalization currently stands at $1.37B.

Stock in the Spotlight: HP (NYSE:HPQ)

HP Inc. (NYSE:HPQ) reported earnings for the three months ended April 2016 on May 25, 2016. The company earned $0.41 per share on revenue of $11.59B. Analysts had been modeling earning per share of $0.38 with $11.72B in revenue.

HP Inc. provides products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin client PCs, tablets, retail point-of-sale systems, calculators and other related accessories, software, support, and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, scanning device, and software and services; and laserjet and enterprise, inkjet and printing, graphics, and software and web services. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.

HP Inc. earnings per share showed a decreasing trend of -5.4% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 164%.Analysts project EPS growth over the next 5 years at 1.15%. It has EPS annual decline over the past 5 fiscal years of -7.7% when sales declined -3.9. It reported -10.7% sales drop, and -4.5% EPS decline in the last quarter.

The stock is trading at $12.95, up 48.33% from 52-week low of $8.91. The stock trades down -9.91% from its peak of $14.82 and 8.88% above the consensus price target of $14.1. Its volume clocked up at 13.35 million shares which is higher than the average volume of 12.78 million shares. Its market capitalization currently stands at $21.57B.

Stock on the Move: International Game Technology (NYSE:IGT)

International Game Technology PLC (NYSE:IGT) reported earnings for the three months ended March 2016 on May 26, 2016. The company earned $0.57 per share on revenue of $1.28B. Analysts had been modeling earning per share of $0.48 with $1.28B in revenue.

International Game Technology PLC (IGT) on May 26, 2016 reported financial results for the first quarter ended March 31, 2016.

“We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability,” said Marco Sala, CEO of IGT. “Continuing growth across all regions, especially North America and Italy, propelled our lottery revenues. Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market. We remain focused on reenergizing gaming operations and strengthening our global leadership in lotteries. We were successful in securing the Italian Lotto concession, one of our largest contracts and a cornerstone of our Italian operations.”

“The diversity of our product and geographic mix is a key element of our first quarter results,” said Alberto Fornaro, CFO of IGT. “Revenue growth, disciplined cost management, and synergy savings all contributed to sharp profit expansion. Even after large interest payments during the period, we generated significant free cash flow, enabling us to reduce debt in constant currency and further improve our leverage profile.”

Overview of Consolidated First Quarter Results

Reported consolidated revenue grew 51% to $1,282 million from $848 million in the first quarter of 2015, reflecting GTECH’s acquisition of legacy IGT. On a pro forma, constant currency basis, consolidated revenue rose 4%. Revenue growth primarily reflects strong lottery performance, particularly in North America and Italy. Global lottery same-store revenue, excluding Italy, increased 18% during the first quarter, reflecting the benefit of the record Powerball jackpot in the United States. Revenue from gaming was slightly below the prior-year period. During the quarter, the Company sold 5,695 gaming machines worldwide.

On a reported basis, adjusted EBITDA of $460 million was 43% above the first quarter of 2015.  On a pro forma, constant currency basis, adjusted EBITDA was 12% greater than in the prior-year period as overall sales growth was accentuated by favorable revenue mix and synergy savings.

Reported operating income was $188 million compared to $163 million in the first quarter of 2015. On a pro forma, constant currency basis, adjusted operating income was 35% above the first quarter of 2015, which included significant bad debt expense. In addition, revenue growth, overall sales mix, and synergy savings all contributed to the increase in adjusted operating income.

International Game Technology PLC earnings per share showed a decreasing trend of -179.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 211%.Analysts project EPS growth over the next 5 years at 10%. It has EPS annual growth over the past 5 fiscal years of 1.61% when sales grew 15.2. It reported 58.7% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $19.48, up 59.5% from 52-week low of $12.48. The stock trades down -2.16% from its peak of $20.03 and % below the consensus price target of $22.33. Its volume clocked up at 0.57 million shares which is lower than the average volume of 0.72 million shares. Its market capitalization currently stands at $3.89B.

Earnings Analysis To Watch: GameStop Corp. (GME)

GameStop Corp. (GME) reported earnings for the three months ended April 2016 on May 26, 2016. The company earned $0.66 per share on revenue of $1.97B. Analysts had been modeling earning per share of $0.62 with $1.97B in revenue.

GameStop Corp. (GME), a global family of specialty retail brands that makes the most popular technologies affordable and simple, reported sales and earnings for the first quarter ended April 30, 2016.

First Quarter Results
Total global sales decreased 4.3% to $1.97 billion, while consolidated comparable store sales declined 6.2% (-6.6% in the U.S. and -4.9% internationally). Video game sales were adversely impacted by a 28.8% decline in new hardware sales and the overlap of several strong new software titles launched in Q1 2015. Pre-owned sales declined 3.7% compared to the first quarter of 2015.

Non-GAAP digital receipts rose 16.6%, to $259.0 million, driven by DLC for The Division and POSA sales. GAAP digital sales decreased 7.0%.

Sales in the Mobile and Consumer Electronics category increased 40.8%, as Technology Brands revenues increased 62.2% to $165.8 million. Technology Brands operating earnings were $18.8 million, a 506.5% increase over the prior year quarter. Overall, this segment contributed 16.5% of the company’s first quarter operating earnings. The company added 18 net Technology Brand stores during the quarter and currently expects to close the acquisition of two AT&T authorized resellers by the end of the second quarter.

Collectibles sales rose over 250%, driven by the addition of ThinkGeek.com and assorted sales of Five Nights at Freddy’s products, Pokemon trading cards and Minecraft toys in our GameStop branded stores. The company added two Collectibles stores during the quarter, bringing the total global portfolio to 37 stores.

In the first quarter, the company recorded one-time charges of $4.1 million, $2.6 million net of tax, or $0.03 per diluted share, related to the closure of our operations in Puerto Rico. A reconciliation of non-GAAP adjusted net income to GAAP net income is included with this release (Schedule III).

Including the charges, GameStop’s first quarter net earnings were $65.8 million, or diluted earnings per share of $0.63, compared to net earnings of $73.8 million, or diluted earnings per share of $0.68, in the prior year quarter.

Excluding these charges, GameStop’s adjusted net earnings for the first quarter were $68.4 million compared to net earnings of $73.8 million in the prior year quarter. Adjusted diluted earnings per share were $0.66 compared to diluted earnings per share of $0.68 in the prior year quarter.

GameStop Corp. earnings per share showed an increasing trend of 8.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 426%.Analysts project EPS growth over the next 5 years at 7.63%. It has EPS annual growth over the past 5 fiscal years of 7.3% when sales declined -0.2. It reported -4.3% sales drop, and -7.2% EPS decline in the last quarter.

The stock is trading at $26.33, up 10.89% from 52-week low of $24.33. The stock trades down -42.76% from its peak of $47.83 and % below the consensus price target of $35.4. Its volume clocked up at 1.52 million shares which is lower than the average volume of 3.14 million shares. Its market capitalization currently stands at $2.70B.

Earnings in Focus: JinkoSolar Holding Co., Ltd. (NYSE:JKS)

JinkoSolar Holding Co., Ltd. (NYSE:JKS) reported earnings for the three months ended March 2016 on May 27, 2016. The company earned $1.44 per share on revenue of $847.81M. Analysts had been modeling earning per share of $0.86 with $685.05M in revenue.

JinkoSolar Holding Co., Ltd. (JKS), a global leader in the solar PV industry, announced its unaudited financial results for the first quarter ended March 31, 2016.

First Quarter 2016 Highlights

  • Total solar module shipments were 1,600 megawatts (“MW”), which includes 166 MW to be used in the Company’s downstream projects. Total solar module shipments decreased by 6.4% from 1,710 MW in the fourth quarter of 2015 and increased by 102.7% from 789 MW in the first quarter of 2015.
  • Total revenues were RMB5.47 billion (US$847.8 million), representing a 10.0% decrease from the fourth quarter of 2015 and an increase of 98.8% from the first quarter of 2015.
  • Solar power projects generated 210 GWh of electricity, representing a 36.4% increase from the fourth quarter of 2015, and an increase of 81.7% from the first quarter of 2015. Revenues generated from solar power projects were RMB185.5 million (US$28.8 million), representing a 36.1% increase from the fourth quarter of 2015 and an increase of 81.7% from the first quarter of 2015.
  • As of March 31, 2016, the Company had connected 1,007 MW worth of solar power projects.
  • Gross margin was 21.3%, compared with 19.5% in the fourth quarter of 2015 and 20.3% in the first quarter of 2015.
  • Income from operations was RMB573.7 million (US$89.0 million), compared with RMB482.7 million in the fourth quarter of 2015 and RMB230.0 million in the first quarter of 2015.
  • Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB313.3 million (US$48.6 million), compared with RMB349.4 million in the fourth quarter of 2015 and RMB51.0 million in the first quarter of 2015.
  • Diluted earnings per American depositary share (“ADS”) were RMB9.32 (US$1.44), compared with RMB10.92 in the fourth quarter of 2015 and RMB1.60 in the first quarter of 2015.
  • Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders in the first quarter of 2016 was RMB414.6 million (US$64.3 million), compared with RMB503.5 million in the fourth quarter of 2015 and RMB171.2 million in the first quarter of 2015.
  • Non-GAAP basic and diluted earnings per ADS were RMB13.20 (US$2.04) and RMB11.20 (US$1.72), respectively, in the first quarter of 2016.

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “We began the year very strongly with total module shipments reaching 1,600 MW, ranking us as the biggest module supplier among our peers during the first quarter. Next month marks our 10-year anniversary and I couldn’t imagine a better way to celebrate this milestone. We began our journey from humble beginnings and sustainably built our way into a globally recognized brand having shipped a total of 13 GW to more than 1,700 customers in over 70 countries and regions since then. We have always prided ourselves on our conservative and sustainable approach to building our business, and I am confident that we will be able to continue generating long-term return for our shareholders.”

JinkoSolar Holding Co., Ltd. earnings per share showed an increasing trend of 22.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 521%.Analysts project EPS decline over the next 5 years at -11%. It has EPS annual decline over the past 5 fiscal years of -13.3% when sales grew 28.1. It reported 98.8% sales growth, and 429.2% EPS growth in the last quarter.

The stock is trading at $20.87, up 45.74% from 52-week low of $14.32. The stock trades down -35.35% from its peak of $31.47 and % below the consensus price target of $31.07. Its volume clocked up at 0.22 million shares which is lower than the average volume of 0.55 million shares. Its market capitalization currently stands at $642.81M.

Stock to Watch For Earnings: JA Solar (NASDAQ:JASO)

JA Solar Holdings Co., Ltd. (NASDAQ:JASO) reported earnings for the three months ended March 2016 on May 27, 2016. The company earned $0.52 per share on revenue of $25.13M. Analysts had been modeling earning per share of $0.31 with $81.73M in revenue.

JA Solar Holdings Co., Ltd. (JASO), one of the world’s largest manufacturers of high-performance solar power products, announced its unaudited financial results for its first quarter ended March 31, 2016.

First Quarter 2016 Highlights

  • Total shipments were 1,128.3 megawatts (“MW”), consisting of 1,038.3 MW of modules and cells to external customers, and 90.0 MW of modules to the Company’s own downstream projects. External shipments were up +52.4% y/y and down -22.4%sequentially
  • Shipments of modules and module tolling were 919.4 MW, an increase of +57.4% y/y and decrease of 29.1% sequentially
  • Shipments of cells and cell tolling were 118.9 MW, an increase of +22.1% y/y and +188.6% sequentially
  • Net revenue was RMB 3.5 billion ($538.1 million), an increase of +44.4% y/y and decrease of 24.5% sequentially
  • Gross margin was 16.6%, an increase of 50 basis points y/y and decrease of 50 basis points sequentially
  • Operating profit was RMB 223.3 million ($34.6 million), compared to RMB 149.6 million($23.2 million) in the first quarter of 2015, and RMB 260.1 million ($40.3 million) in the fourth quarter of 2015
  • Net income was RMB 158.0 million ($24.5 million), compared to RMB 35.0 million ($5.4 million) in the first quarter of 2015, and RMB 184.9 million ($28.7 million) in the fourth quarter of 2015
  • Earnings per diluted ADS were RMB 2.74 ($0.43), compared to RMB 0.59 ($0.09) in the first quarter of 2015, and RMB 3.39 ($0.53) in the fourth quarter of 2015
  • Cash and cash equivalents were RMB 2.3 billion ($362.1 million), a decrease of RMB548.4 million ($85.0 million) during the quarter
  • Non-GAAP earnings1 per diluted ADS were RMB 2.33 ($0.36), compared to RMB 0.82 ($0.13) in the first quarter of 2015, and RMB 3.14 ($0.49) in the fourth quarter of 2015.

JA Solar Holdings Co., Ltd. earnings per share showed an increasing trend of 48.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 139%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -27.7% when sales grew 2.8. It reported 44.4% sales growth, and 368.1% EPS growth in the last quarter.

The stock is trading at $6.81, up 8.1% from 52-week low of $6.3. The stock trades down -32.51% from its peak of $10.09 and % below the consensus price target of $8.84. Its volume clocked up at 0.24 million shares which is lower than the average volume of 0.55 million shares.

Looking At Post-Earnings Stock Movement: The Toronto-Dominion (NYSE:TD)

The Toronto-Dominion Bank (NYSE:TD) reported earnings for the three months ended April 2016 on May 26, 2016. The company earned $1.2 per share on revenue of $8.26B. Analysts had been modeling earning per share of $1.17 with $7.92B in revenue.

The Toronto-Dominion Bank, together with its subsidiaries, provides various retail and commercial banking products and services in Canada, the United States, and internationally. The company operates through Canadian Retail, U.S. Retail, and Wholesale Banking segments. It offers telephone, Internet, and mobile banking services to personal and small business customers through a network of branches and automated banking machines; financing, investment, cash management, international trade, and day-to-day banking services to the medium and large Canadian businesses; financing options to customers at point-of-sale for automotive and recreational vehicles through its auto dealer network; credit cards; direct investing, advice, and asset management services to retail and institutional clients; and property and casualty insurance, as well as life and health insurance products. The company also provides capital market, investment banking, and corporate banking products and services to the companies, governments, and institutions. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

The Toronto-Dominion Bank earnings per share showed an increasing trend of 1.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 505%.Analysts project EPS growth over the next 5 years at 6.77%. It has EPS annual growth over the past 5 fiscal years of 8.3% when sales grew 7.4. It reported 6.6% sales growth, and 9.9% EPS growth in the last quarter.

The stock is trading at $44.4, up 33.9% from 52-week low of $33.49. The stock trades down -2.93% from its peak of $45.74 and % below the consensus price target of $46.3. Its volume clocked up at 1.22 million shares which is lower than the average volume of 1.63 million shares. Its market capitalization currently stands at $81.07B.

Post-earnings stock watch: Seadrill Partners (NYSE:SDLP)

Seadrill Partners LLC (NYSE:SDLP) reported earnings for the three months ended March 2016 on May 26, 2016. The company earned $0.39 per share on revenue of $444M. Analysts had been modeling earning per share of $1.02 with $426M in revenue.

Total operating revenues for the first quarter were $444.0 million, compared to $467.2 million in the fourth quarter of 2015. The decrease is primarily related to the dayrate reduction on the West Polaris and a decrease in performance related bonuses achieved relative to the fourth quarter, partially offset by a full quarter of operations for the West Vencedor. The West Polaris dayrate reduction from $653,000 to $490,000 has no impact on Adjusted EBITDA or backlog since Seadrill Partners acquired the unit based on a $450,000 dayrate and pays anything above this rate, net of commissions, to Seadrill Limited in the form of deferred consideration.

Total operating expenses for the first quarter were $220.5 million, compared to $229.1 million in the previous quarter. The decrease is primarily due to efficiencies achieved in vessel and rig operating expenses and a reduction in overhead costs.

Operating income was lower for the quarter at $223.5 million ($238.1 million in Q4 2015) due to lower revenue, partially offset by reduced costs.

Financial and other items resulted in an expense of $112.7 million for the first quarter compared to an expense of $43.7 million in the fourth quarter primarily due to a loss on mark-to-market valuation of derivatives of $69.7 million compared to a gain of $19.2 million in the fourth quarter.  This loss is related to our interest rate hedge book and was due to a decrease in interest rates in the period. The non-cash element of this expense was $57.5 million in the period.

Seadrill Partners LLC earnings per share showed an increasing trend of 60% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 56%.Analysts project EPS growth over the next 5 years at 1.2%. It has EPS annual growth over the past 5 fiscal years of 1.56% when sales grew 29.5. It reported 10.8% sales growth, and -5.5% EPS decline in the last quarter.

The stock is trading at $5.64, up 247.56% from 52-week low of $1.7. The stock trades down -48.98% from its peak of $13.36 and % below the consensus price target of $5.38. Its volume clocked up at 0.4 million shares which is lower than the average volume of 1.23 million shares. Its market capitalization currently stands at $499.51M.

Volatile post-earnings mover: 21Vianet (NASDAQ:VNET)

21Vianet Group, Inc. (NASDAQ:VNET) reported earnings for the three months ended March 2016 on May 26, 2016. The company earned $-0.84 per share on revenue of $131.57M. Analysts had been modeling earning per share of $-0.32 with $154M in revenue.

21Vianet Group, Inc. (VNET), a leading carrier-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter of 2016. First Quarter 2016 Financial Highlights

  • Net revenues increased to RMB862.3 million (US$133.7 million) from RMB860.1 million in the comparative period in 2015.

Mr. Steve Zhang, Chief Executive Officer of the Company, stated, “First of all, we are very excited to welcome an industry leader, Tus-Holdings, as a major strategic investor in our company and believe that its investment offers significant strategic values in strengthening our core operations and expanding new business opportunities. During the first quarter, we continued to execute on our strategies to grow our core businesses organically while maintaining a disciplined approach in our cost structure. Our IDC business remains a steady growth engine, driven by improving utilization rate, relatively low churn and strong billing cabinet sales, especially in tier one markets. Additionally, we are pleased to see demand for our cloud services remained strong thanks to continued traction with the Windows Azure and Office 365 product offerings. However, as we restructure our business and invest in our core growth opportunities, we also witnessed certain industry challenges and non-recurring factors. Solid year-over-year growth in IDC, cloud and VPN revenues were offset by continued weakness in MNS business, seasonal headwinds in our content delivery network business and the optimization process in Aipu business. However, going forward, we are confident that we can overcome these challenges, reignite growth and profitability and strengthen our position as a leading internet infrastructure services provider.”

Mr. Terry Wang, Chief Financial Officer of the Company, commented, “Our total revenues in the first quarter increased to RMB862.3 million (US$133.7 million), primarily driven by solid year-over-year growth in our hosting line, including IDC, cloud and VPN. Overall number of cabinets reached 23,825 and our data center utilization rate improved to 74.6% from 71.7%. Additionally, we also tightened our cost by reducing sales agency fees and consulting fees, reducing our total operating expenses to RMB254.5 million (US$39.5 million) in the first quarter of 2016. However, hosting revenue growth was partially offset by the continued bandwidth pricing pressure in our MNS business and as we trimmed some of the lower margin revenue in the Aipu business. As the entire operations team is proactively working to address these challenges, we will continue to fine-tune our cost structure and become more disciplined in our capital investment programs going forward.”

21Vianet Group, Inc. earnings per share showed a decreasing trend of -0.2% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -46%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 23.8% when sales grew 47.2. It reported 0.3% sales growth, and -21.6% EPS decline in the last quarter.

The stock is trading at $11.62, up 10.04% from 52-week low of $10.56. The stock trades down -45.88% from its peak of $21.47 and % below the consensus price target of $18.37. Its volume clocked up at 0.77 million shares which is lower than the average volume of 1.54 million shares.