Cheetah Mobile Q2 Earnings, Sales Beat Analyst Estimates

Cheetah Mobile (CMCM) shares surged 12% in pre-market activity Monday after the company reported Q2 adjusted earnings of RMB1.39 ($0.21) per diluted American depositary share, more than doubling from RMB0.64 per ADS a year ago and also above the RMB0.70 average estimate from two analysts polled by Capital IQ.

Total revenues were RMB1.10 billion ($166.8 million), exceeding the company’s previous guidance range of RMB1.02 billion to RMB1.08 billion, and also beating the RMB1.07 billion consensus of three analysts polled by Capital IQ.

For Q3, the company expects total revenues to be between RMB1.29 billion ($194.9 million) and RMB1.35 billion, representing a year-over-year increase of 10% to 15%. That compares with an two analysts’ expectation of RMB1.18 billion.

“We will remain committed to our ongoing efforts in optimizing the company’s cost structures and operating efficiency,” CFO Vincent Jiang said. “The strong cash flow generated by our existing business and our strong cash reserves will enable us to further expand into the A.I. [artificial intelligence] space, which we expect to be the key to our long-term growth.”