Shares of GDS Holdings Ltd (NASDAQ:GDS) tumbled 7.25% in pre-market trading on Wednesday following the release of its fourth-quarter earnings report. The company's quarterly sales fell significantly short of analyst expectations, triggering a sell-off in the stock.
GDS Holdings reported Q4 sales of $368.60 million, missing the analyst consensus estimate of $430.70 million by 14.42%. Despite the miss, the reported figure represents a modest 2.37% increase from the $360.07 million in sales recorded in the same period last year. The substantial gap between actual results and market expectations appears to be the primary driver behind the stock's pre-market plunge.
This earnings miss could raise concerns among investors about GDS Holdings' growth trajectory and its ability to meet future projections. As the market digests this information, investors will likely be looking for additional guidance from the company's management regarding strategies to address the sales shortfall and improve performance in upcoming quarters.