China-based specialty tech company Chindata Group Holdings (CD 2.12%) did better than many of its American counterparts on Friday. The data center operator’s shares rose by over 2% to eclipse the gain of the S&P 500 index, thanks to an estimates-beating quarter it reported that morning.
Chindata published its unaudited results for both the second quarter and the first half of this year. For the quarter, the company managed to lift its revenue 51% higher year over year to just under 1.04 billion yuan ($147 million). Net income saw a much higher gain, rising at a 206% clip to land at slightly below 200 million yuan ($29 million). That shakes out to 0.54 yuan ($0.08) per each of Chindata’s American Depositary Shares (ADSes).
Both headline figures topped analyst expectations. On average, prognosticators following the stock were anticipating 1.01 billion yuan ($147 million) on the top line, and only 0.30 yuan ($0.04) per ADS for net income.
In its earnings release, Chindata attributed its growth to the “effort in leveraging its competitive strength and building up business partnership ecosystem in pursuit of improved client, geography and business model diversification and sustainable business development.”
The company is benefiting from the Eastern Data, Western Computing initiative earlier this year by the Chinese government. This program aims to encourage the construction of a network of large-scale data centers throughout the massive country.
With that initiative under its feet, Chindata’s growth momentum should continue, or even accelerate. The company proffered select guidance for full-year 2022, in which it’s predicting 4.13 billion yuan ($602 million) to 4.23 billion yuan ($617 million) on the top line, for growth of at least 45%.
Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at 2.10 billion ($306 million) to 2.18 billion ($3.18 million). This would represent a minimal 48% improvement over the 2021 figure.
Chindata did not provide any guidance for net income.