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

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

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 Price Performance

NYSE CMCM opened at $3.04 on Friday. Cheetah Mobile has a 1-year low of $2.65 and a 1-year high of $9.44. The company has a market capitalization of $92.02 million, a P/E ratio of -2.59 and a beta of 1.87. The business has a 50 day moving average price of $3.10 and a 200 day moving average price of $4.50.

Institutional Trading of Cheetah Mobile

Institutional investors have recently bought and sold shares of the company. Jane Street Group LLC grew its holdings in Cheetah Mobile by 852.7% in the fourth quarter. Jane Street Group LLC now owns 30,142 shares of the software maker’s stock valued at $181,000 after purchasing an additional 26,978 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Cheetah Mobile by 17.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 23,131 shares of the software maker’s stock worth $139,000 after buying an additional 3,443 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in Cheetah Mobile in the 3rd quarter valued at about $94,000. Finally, Dimensional Fund Advisors LP acquired a new stake in Cheetah Mobile in the 4th quarter valued at about $69,000. 0.41% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cheetah Mobile in a report on Friday, July 17th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock presently has an average rating of “Sell”.

About Cheetah Mobile

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.