GDS Holdings and Canada Goose Surpass Earnings Expectations
GDS Holdings GDS and Canada Goose GOOS exceeded earnings expectations this week, solidifying their positions as top-rated American Depository Receipts (ADRs). GDS holds a Zacks Rank of #1 (Strong Buy) while Canada Goose is at #2 (Buy).
Based in Shanghai, GDS Holdings is a technology services provider specializing in cloud computing, IT management, and data center hosting—all vital for advancing artificial intelligence. Meanwhile, Canada Goose is recognized for its premium jackets and eyewear sold in over 36 countries.
Recent Stock Performance
Following their strong quarterly results, GDS shares increased nearly 20% this month, approaching $30 each. Canada Goose shares rose over 30%, reaching $11.
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GDS Holdings Q1 Results
In its Q1 report, GDS Holdings posted an earnings per share (EPS) of $0.48, exceeding expectations of an adjusted loss of -$0.22, and improving from a loss of -$0.27 in the same quarter last year. The company noted its highest revenue growth during the last two years at 12%, with EBITDA growth of 16% attributed to enhanced delivery and project scheduling.
The growing need for AI training in remote areas has positioned GDS Holdings for more opportunities, as the company announced a deal for 152 megawatts of capacity in Q1. GDS anticipates robust demand for services as challenges with AI chip supply in China resolve.
Notably, GDS Holdings has outperformed the Zacks EPS Consensus for five straight quarters, achieving an average earnings surprise of 108.24% over its last four reports.
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Canada Goose’s Q4 Results
Canada Goose exceeded Q4 earnings expectations by nearly 44%, reporting EPS of $0.23 compared to estimates of $0.16. This marks an increase from $0.14 in the same quarter of the previous year. The company emphasized its Canadian-made products are primarily unaffected by tariff imports to the U.S.
Moreover, Canada Goose’s direct-to-consumer segment saw a significant year-over-year boost of 15%, driven by effective marketing that increased global demand, especially in the U.S. The company’s inventory reduced by 14%, underscoring enhanced operational efficiency.
Similar to GDS, Canada Goose has also outperformed the Zacks EPS Consensus for five consecutive quarters, achieving an average earnings surprise of 57.23% in its last four quarterly reports.
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Bottom Line
Both GDS Holdings and Canada Goose present compelling ADR opportunities, especially as EPS estimates are expected to rise following their favorable quarterly reports. Each company has exceeded revenue expectations as well.
