Hello Group Inc. Earnings Expected to Decline Significantly

Hello Group Inc. anticipates a 35.90% drop in EPS for Q2 2024, following two quarters of negative surprises, which may pressure its stock price ahead of report.

Date: 07-09-2024

AI Rating: 4

Hello Group Inc. (MOMO) is set to report its earnings for the quarter ending June 30, 2024. The consensus earnings per share (EPS) forecast stands at $0.25, reflecting a significant 35.90% decrease compared to the same quarter last year.

The company has recently experienced challenges as evidenced by the last two quarters, where it had negative earnings surprises, including one report that missed by a staggering -100%. This trend highlights a concerning performance trajectory that investors may find alarming.

In terms of valuation, Zacks Investment Research indicates that Hello Group’s 2024 Price to Earnings ratio is measured at 8.79, which is significantly lower than the industry ratio of 414.10. This disparity in ratios could imply that investors are less optimistic about MOMO relative to its peers in the industry.

Given the substantial drop in expected EPS and history of earnings misses, the stock price of Hello Group Inc. could face downward pressure in anticipation of its upcoming earnings report.

Stocks: MOMO