Why 21Vianet (VNET) Stock Is Down After Hours

NEW YORK (TheStreet) -- 21Vianet (VNET) stock is dropping in post-market trading after the China-based IT services company missed first-quarter earnings.

After the bell, shares dropped 1.6% to $26.49.

Over the three months to March, the company earned 8 cents a share, 2 cents less than analysts surveyed by Thomson Reuters forecast. Revenue of $94.3 million exceeded estimates of $92.7 million. 

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TheStreet Ratings team rates 21VIANET GROUP INC as a Hold with a ratings score of C. TheStreet Ratings 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 robust revenue growth, solid stock price performance 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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