Cheetah Mobile jumps 20% after Q2 report, revenue recovery
Shares of mobile Internet company Cheetah Mobile (CMCM) are higher at midday after announcing earnings this morning. The company reported second quarter earnings per share of 21c on revenue of $166.8M. Analysts were modeling Q2 EPS of 9c on revenue of $155.22M. Sheng Fu, Cheetah Mobile's chairman, and chief executive officer commented, "We are pleased that the initiatives we have implemented to resume growth for our company are starting to bear fruit. In the second quarter of 2018, we reported better-than-expected total revenue." The executive said Cheetah expects revenues in the second half of 2018 "to recover its sequential growth trends, primarily driven by growth in our mobile utility products business in the domestic market, growth in our mobile game business and the normal seasonality effect." He added that "In this quarter, revenues from mobile utility products in the domestic market grew substantially, primarily driven by our Clean Master application for the Chinese market, which reached over 30 million DAUs in June. In addition, our existing game portfolio has continued to achieve solid performance." Going forward, the CEO said he expects its existing businesses in mobile utility products and mobile games will continue to "grow steadily and generate healthy profits. Meanwhile, we are excited to further develop our new artificial intelligence robotics products, with the help of Beijing OrionStar." EXPECTATIONS: For the third quarter of 2018, the company expects its total revenues to be between $194.9M-$204M, representing a year-over-year increase of 10%-15%. Analysts currently expect Cheetah to report Q3 revenue of $168.34M. PRICE ACTION: Shares of Cheetah Mobile trading in New York are up 20%, or $1.82, to $10.92 in early afternoon trading.