Momo Earnings: MOMO Stock Sinks 15% on Q3 Forecast

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Momo (NASDAQ:MOMO) earnings for the Chinese social media company’s second quarter of 2020 have its stock falling hard on Thursday. That’s despite its adjusted earnings per share of 3.05 yen beating out Wall Street’s estimate of 2.94 yen. Its revenue of 3.87 billion yen also comes in above analysts’ estimate of 3.84 billion yen.

momo social media stocks app on a mobile phone screen

Source: Ascannio / Shutterstock.com

Here’s what else is worth mentioning from the most recent Momo earnings report.

  • Adjusted per-share earnings are down 45.5% compared to 5.60 yen in the same period of the year prior.
  • Revenue for the quarter comes in 6.8% lower than the 4.15 billion yen reported in Q2 2019.
  • Operating income of 812.7 million yen is a 12.4% decline year-over-year from 927.7 million yen.
  • The Momo earnings report also includes a net income of 455.5 million yen.
  • That’s a 37.7% drop from the company’s net income of 731.1 million yen from the same time last year.

Yan Tang, chairman and CEO of Momo, said the following in the earnings report.

“The second quarter of 2020 was a busy quarter for us. With things gradually coming back to normal on the traffic side, starting from the second quarter of 2020, our teams have stepped up efforts to push toward our long term strategic goals.”

Momo also includes guidance for the third quarter of 2020 in its current earnings report. It expects revenue for the period to range from 3.7 billion yen to 3.8 billion yen. Unfortunately for MOMO stock, Wall Street is looking for revenue of 4.34 billion yen during the quarter.

MOMO stock was down 15.3% as of Thursday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/09/momo-earnings-drop-stock-despite-earnings-beat/.

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