21Vianet (VNET) Tumbles Despite Earnings Win

NEW YORK (TheStreet) -- 21Vianet (VNET) tumbled on Friday despite posting better-than-expected earnings and sales for its fourth quarter.

The IT services provider said its net income was 10 cents a share in the three months to December. Analysts surveyed by Thomson Reuters had anticipated 8 cents a share.

Revenue of $90.2 million was a 34.5% year-over-year increase and beat estimates by $1.44 million.

By late afternoon, shares had slipped 4% to $26.55.

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TheStreet Ratings team rates 21VIANET GROUP INC as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate 21VIANET GROUP INC (VNET) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."

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