Momo Inc (ADR) (NASDAQ:MOMO) stock was falling hard on Tuesday following the release of its earnings report for the third quarter of the year.
The drop to MOMO stock comes despite earnings per share of 45 cents for the third quarter of 2017. This is better than Momo Inc (ADR)’s earnings per share of 24 cents from the same time last year. It also beat out Wall Street’s earnings per share estimate of 38 cents for the quarter,
Revenue reported by Momo Inc (ADR) for the third quarter of the year was $354.50 million. This is up from the social networking company’s revenue of $157.00 million reported in the third quarter of 2016. It also came in above analysts’ revenue estimate of $339.29 million for the third quarter of 2017.
Momo Inc (ADR) also provided guidance for its fourth quarter of the year in its most recent earnings report. The company is expecting revenue for the quarter to range from $370.00 million and $385.00 million. Wall Street is expecting revenue of $382.08 million for the period.
While Momo Inc (ADR) had nothing but good news in its third quarter earnings report, that didn’t stop MOMO stock from taking a hit on Tuesday. This is likely due to the falling stock market in China that started on Thursday.
“Institutional investors are choosing to cash in toward year-end as valuations are near historic highs and market sentiment deteriorated after official media targeted Moutai,” Shen Zhengyang, an analyst at Northeast Securities Co., told Investor’s Business Daily.
MOMO stock was down 15% as of noon Tuesday, but is up 42% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.