Momo Earnings: MOMO Stock Drops 6% Despite Q1 Beat

MOMO's revenue outlook for Q2 is weak

Momo (NASDAQ:MOMO) earnings for first quarter of 2020 have its stock taking a beating on Thursday. That comes after reporting adjusted earnings per share (EPS) of 3.34 yuan. That’s much better than Wall Street’s estimate of 3.07 yuan. Its revenue of 3.59 billion yuan is also above analysts’ estimates of 3.52 billion yuan.

Momo Earnings: MOMO Stock Drops 5% Despite Q1 Beat
Source: Ascannio /

Now, let’s take a more in-depth look at the most recent Momo earnings report.

  • Adjusted per-share earnings are 19.5% lower than the 4.15 yuan reported during the same time last year.
  • Revenue for the quarter comes in 3.5% lower compared to 3.72 billion yuan in the first quarter of 2019.
  • Operating income of 549.1 million yuan is a 54.6% increase year-over-year from 384.4 million yuan.
  • The Momo earnings report also has the company bringing in a net income of 537.7 million yuan.
  • That’s 87.6% better than the company’s net income of 286.6 million yuan from the same period of the year prior.

Yan Tang, chairman and CEO of Momo, said this about the Q1 earnings report:

“Q1 2020 was a challenging and yet very fruitful quarter for Momo. I am proud that the team has been able to adapt well to the changing environment and navigate through the
challenges with solid execution against our strategic goals. Despite the macro headwind, we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders.”

Momo also includes a second-quarter outlook in the current earnings report. It’s expecting revenue to range from 3.8 billion yuan to 3.9 billion yuan. Unfortunately for MOMO stock, Wall Street is estimating revenue of 4.02 billion yuan for the quarter.

MOMO stock was down 5.6% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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