Cheetah Mobile (NYSE:CMCM) Releases Earnings Results, Misses Expectations By $1.06 EPS

Cheetah Mobile (NYSE:CMCM) released its earnings results on Thursday. The software maker reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($1.06), reports. Cheetah Mobile had a negative return on equity of 3.90% and a negative net margin of 21.14%.The company had revenue of $39.17 million for the quarter, compared to the consensus estimate of $225.25 million.

Here are the key takeaways from Cheetah Mobile’s conference call:

• Cloud and AI infrastructure accelerated: Revenue rose 83% year over year to RMB59.1 million, representing 22.2% of total revenue. Management expects 2026 gross billings to exceed RMB2 billion and related revenue to surpass RMB200 million.
• Business mix continued shifting toward growth areas: Cloud and AI infrastructure plus robotics accounted for approximately 43% of second-quarter revenue, up from 22% a year earlier, while revenue excluding advertising agency services grew about 10% year over year.
• Robotics expanded into smart mobility: Robotics and other revenue increased 72.5% year over year to RMB54.5 million as smart wheelchair products began shipping in Europe and China. Management highlighted the product line’s capital-efficient development and potential for further growth.
• Advertising agency revenue fell sharply: Revenue declined 70% year over year to RMB22 million due to review-policy changes at a major global advertising platform, contributing to a RMB25.6 million non-GAAP operating loss and a wider overall operating loss.
• Robotics remains in an investment phase: The segment’s adjusted operating loss widened sequentially to RMB34 million as the company invested in product development, commercialization, sales channels, and certifications, although management expects profitability to improve over time.

Cheetah Mobile Stock Down 9.4%

CMCM opened at $3.04 on Friday. Cheetah Mobile has a 12-month low of $2.65 and a 12-month high of $9.44. The business has a 50 day moving average of $3.10 and a 200-day moving average of $4.50. The stock has a market cap of $92.02 million, a price-to-earnings ratio of -2.59 and a beta of 1.87.

Institutional Investors Weigh In On Cheetah Mobile

Several hedge funds have recently added to or reduced their stakes in CMCM. Jane Street Group LLC grew its stake in Cheetah Mobile by 852.7% in the 4th quarter. Jane Street Group LLC now owns 30,142 shares of the software maker’s stock valued at $181,000 after buying an additional 26,978 shares during the last quarter. Nomura Holdings Inc. bought a new stake in shares of Cheetah Mobile during the third quarter worth approximately $94,000. Dimensional Fund Advisors LP bought a new stake in shares of Cheetah Mobile during the fourth quarter worth approximately $69,000. Finally, Goldman Sachs Group Inc. grew its position in shares of Cheetah Mobile by 17.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 23,131 shares of the software maker’s stock valued at $139,000 after purchasing an additional 3,443 shares during the last quarter. Institutional investors and hedge funds own 0.41% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Cheetah Mobile in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, Cheetah Mobile presently has a consensus rating of “Sell”.

Cheetah Mobile Company Profile

Cheetah Mobile Inc operates as a mobile internet company primarily focused on developing and distributing utility and entertainment applications for smartphones and tablets. Its portfolio includes well-known security and optimization products such as Clean Master, Security Master and Battery Doctor, alongside consumer-oriented offerings in mobile gaming and content discovery. The company’s software solutions are designed to enhance device performance, improve privacy protection and deliver engaging digital experiences for end users.

Founded as the mobile internet division of Kingsoft in 2010, Cheetah Mobile spun off as an independent, publicly traded company in late 2014.