March 10, 2014, 1:35 P.M. ET
21 Vianet: 2014 Guidance Conservative, JP Morgan Raises TP
By Shuli Ren
Last Friday, shares of Chinese data center service provider 21 Vianet (VNET) slumped 3.6% after the company reported solid fourth-quarter earnings but guided light 2014 self-built cabinet additions.
Well, the management’s guidance was too conservative, said J.P. Morgan analysts Lucy Liu, Michelle Wei, and James R. Sullivan:
2014 guidance leaves room to beat, in our view. The company aims to add 10K cabinets in 2014 with a stabilized utilization rate above 70%. Two-thirds of capacity will be added in Northern China with a 30% price premium, and 25% of the whole year’s supply has been pre-ordered, according to the company. Cloud is guided to contribute 10%+ of total revenue and 20% of EBITDA in 2014. We think upside to guidance will come from enterprise initiatives, expanding MNS to VPN, etc., and a better run rate of cloud computing.
In addition, 21 Vianet has started working with Huawei Technologies, a big client:
Huawei strategic agreement to help execution. VNET has engaged Huawei in three big data centers to be deployed in 2014 using its “module” solution, which helps to shorten construction time by six months. We view this as a key to the company’s deliverables in a heavy investment year.
The J.P. Morgan analysts expressed confidence in 21 Vianet’s execution by raising their price target from $27 to $35:
While we still expect a further multiple increase attributable to scarcity value, continuous high growth generation and an inflated comp multiple, we are more optimistic on the company’s execution, helped by the agreement with Huawei (to shorten construction lead times by six months) and the addition of new business initiatives. We have rolled our PT to Dec-15 and to US$35, based on 13x EV/EBITDA for hosting/MNS and 20x for cloud.
UBS raised Buy rated Facebook's price target to $90 from $72 to reflect Q1 checks that suggest a carry over of Q4 pricing strength into Q1. The firm notes improved advertiser quality and higher CPM format frequency within existing ad load as advertisers seek outsized ROIs on Facebook
ncreased Earnings Estimates Seen for YRC Worldwide (YRCW): Can It Move Higher?
By Zacks Equity Research 1 hour ago
YRC Worldwide Inc. (YRCW), a truck service provider, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.
These positive earnings estimate revisions suggest that analysts are becoming more optimistic on YRCW’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that YRC Worldwide could be a solid choice for investors.
Current Quarter Estimates for YRCW
In the past 30 days, 1 estimate has gone higher for YRC Worldwide while none moved lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of $1.56 a share 30 days ago to a loss of $1.03 today, a significant move.
Current Year Estimates for YRCW
Meanwhile, YRC Worldwide’s current year figures are also looking quite promising, with 1 estimate moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of $2.32 per share 30 days ago to a loss of 89 cents per share today, a significant move.
The stock has also started to move higher lately, adding 13.3% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Ran
Despite the significant outperformance recently, we believe Dangdang’s valuation remains attractive. The
company trades at c1.2x 2014e revenue, a discount to the 2.5x multiple for other China e-commerce stocks. Further, Dangdang trades at 10x our 2015e non-GAAP EPS, with EPS expected to more than double next year.”
Bitauto Holdings ltd (BITA) Tops Q2 EPS by 7c
5:58 AM ET, 03/06/2014 - Street Insider
Bitauto Holdings ltd (NYSE: BITA) reported Q2 EPS of $0.43, $0.07 better than the analyst estimate of $0.36. Revenue for the quarter came in at $79.9 million versus the consensus estimate of $77.6 million.
it's a great buy for any company when you are buying it at cash value
YY, Inc. (YY) Tops Q4 EPS by 14c
4:02 PM ET, 03/04/2014 - Street Insider
YY, Inc. (NASDAQ: YY) reported Q4 EPS of $0.60, $0.14 better than the analyst estimate of $0.46. Revenue for the quarter came in at $101.1 million versus the consensus estimate of $83 million.
Mr. David Xueling Li, Chief Executive Officer of YY, stated, "We're very pleased to end our first full fiscal year as a public company with a solid fourth quarter, building upon the strong momentum we saw throughout 2013. Online music and entertainment2, in particular, again outperformed our expectations, with revenues growing by 217.1% year over year. Resulting from the powerful real-time interactive and social capabilities of our unique platform, we have seen increasingly diversified and interactive online activities among our expanding base of active users, with our average monthly active users reaching 92.3 million in the fourth quarter of 2013. Through a series of engaging and diversified group entertainment events and activities, such as our 2013 Annual Entertainment Awards Ceremony, we were able to not only stimulate user engagement and spending, but also enhance user attachment to our platform. Heading into 2014, we're excited to build upon the robust foundation we have established and continue to broaden our ability to engage our users and monetize our user traffic by further penetrating into online entertainment, live broadcasting, education and other verticals. We are proud of our evolution into a large, live and sticky online entertainment platform and aim to further enable services which cater to Chinese users' dynamic and ever-changing demands."