GDS Holdings Limited (NASDAQ:GDS) Surpasses EPS Estimates
By Tredu.com • 2025-08-20 17:00:05
Tredu
GDS Holdings Limited, listed on NASDAQ as GDS, is a leading player in China's data center industry, specializing in developing and operating high-performance data centers. Despite market challenges, GDS continues to strengthen its competitive position among major data center operators in the region.
On August 20, 2025, GDS reported an earnings per share (EPS) of -$0.008, surpassing the estimated EPS of -$0.11. This marks an improvement from the loss of $0.18 per share reported in the same quarter last year, as noted by Zacks. However, the company's revenue of approximately $404.7 million fell short of the estimated $410 million. GDS's EBITDA growth in the low-teens for Q2 2025 exceeded expectations with a 4% beat, supporting its Buy rating. Potential REIT spin-offs at favorable valuations and improvements in the company's credit profile are seen as catalysts for further stock upside.
The company's financial metrics offer insight into its market valuation. GDS has a price-to-earnings (P/E) ratio of approximately 9.69 and a price-to-sales ratio of about 3.93, reflecting the market's valuation of its earnings and revenue. The enterprise value to sales ratio is around 7.17, indicating the market's valuation of the company relative to its sales, including debt. GDS's debt-to-equity ratio of approximately 1.80 highlights its use of debt financing, while a current ratio of about 1.47 suggests its ability to cover short-term liabilities with short-term assets. These metrics, combined with an earnings yield of about 10.32%, provide a comprehensive view of GDS's financial standing.