Hello Group MOMO 2025Q1 Earnings Preview Upside Ahead on Projected Revenue Growth

Forward-Looking Analysis
Hello Group Inc. is set to release its first-quarter 2025 results on June 5, 2025. The company has provided earnings guidance, expecting total net revenues between RMB 2.4 billion and RMB 2.5 billion. Analysts predict a 19.18% growth in earnings over the next year, with EPS anticipated to rise from $0.73 to $0.87. Despite a trailing EPS of $0.78 and a P/E Ratio of 6.32, recent forecasts suggest annual earnings growth of 6.8% and a 9% increase in EPS per annum. However, Hello Group’s past earnings have been declining at an average annual rate of -11.9%, contrasting with industry earnings growth of 17.1%. Analysts remain optimistic about Hello Group's potential financial performance, noting improvements in key metrics and an anticipated recovery in EPS growth, despite expected revenue declines at a rate of 2.3% per annum.

Historical Performance Review
In the fourth quarter of 2024, Hello Group reported revenue of $2.64 billion, net income of $187.24 million, and an EPS of $0.54. The gross profit for the quarter stood at $911.67 million. These figures reflect a challenging fiscal year, with revenue down 12% and net income decreasing by 47% compared to FY 2023.

Additional News
Hello Group has been active in preparation for its upcoming quarterly earnings report. The company, a prominent player in China’s online social networking space, has scheduled its earnings release before the market opens on Thursday, June 5, 2025. The announcement follows the company’s continued efforts to navigate the evolving digital landscape. Although Hello Group has faced declining earnings, its strategic positioning within interactive media suggests potential recovery. The company is focused on leveraging its platform to enhance user engagement and drive revenue growth amid competitive industry dynamics.

Summary & Outlook
Hello Group’s financial health shows mixed signals with declining revenue trends yet promising earnings growth projections. The company's ability to increase its EPS and revenue guidance speaks to its potential recovery, notwithstanding past performance struggles. Moving forward, the outlook remains cautiously optimistic, supported by analyst predictions of improved annual earnings and consistent EPS growth. While risks persist due to industry competition and declining revenues, Hello Group’s strategic initiatives and forecasted growth in key financial metrics position the company in a neutral to slightly bullish stance for future prospects.