Hello Group Inc. Sponsored ADR (MOMO) Q4 Earnings and Revenues Lag Estimates

Company Performance - Hello Group Inc. (MOMO) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.37 per share a year ago, representing an earnings surprise of -14.29% [1] - The company posted revenues of $361.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.06%, and down from $422.95 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Outlook - Momo shares have lost about 3.8% since the beginning of the year, compared to the S&P 500's decline of -5.3% [3] - The company's earnings outlook, including current consensus earnings expectations for the coming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $319.48 million, and for the current fiscal year, it is $0.82 on revenues of $1.38 billion [7] Industry Context - The Internet - Software industry, to which Momo belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Momo's stock performance [5] - The current estimate revisions trend for Momo is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]