Kingsoft Cloud (NASDAQ:KC) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Kingsoft Cloud beat quarterly expectations: It reported a loss of $0.04 per share versus the consensus loss estimate of $0.07, while revenue reached $452.16 million, above expectations of $446.34 million.
• The company remains unprofitable, with a negative net margin of 9.38% and negative return on equity of 11.67%. Its shares opened at $10.84, well below the 52-week high of $18.52.
• Analyst sentiment is generally positive, with five Buy ratings, one Hold and one Sell; the stock has a “Moderate Buy” consensus rating and an average price target of $17.15.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.03, FiscalAI reports. The firm had revenue of $452.16 million for the quarter, compared to analysts' expectations of $446.34 million. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%.

Kingsoft Cloud Price Performance

Kingsoft Cloud stock opened at $10.84 on Wednesday. The stock's fifty day moving average price is $10.40 and its two-hundred day moving average price is $12.87. Kingsoft Cloud has a one year low of $8.35 and a one year high of $18.52. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.03 and a quick ratio of 1.03. The firm has a market cap of $3.27 billion, a PE ratio of -23.06 and a beta of 1.99.

Insider Buying and Selling at Kingsoft Cloud

In other news, CEO Tao Zou sold 300,000 shares of the company's stock in a transaction on Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the completion of the sale, the chief executive officer directly owned 1,700,000 shares in the company, valued at approximately $1,088,000. This represents a 15.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 14.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Kingsoft Cloud during the fourth quarter worth about $63,000. Equitable Holdings Inc. acquired a new position in shares of Kingsoft Cloud in the 3rd quarter valued at approximately $150,000. Nomura Holdings Inc. bought a new stake in shares of Kingsoft Cloud during the 2nd quarter worth approximately $175,000. Engineers Gate Manager LP lifted its holdings in shares of Kingsoft Cloud by 50.2% during the 4th quarter. Engineers Gate Manager LP now owns 17,025 shares of the company's stock worth $176,000 after acquiring an additional 5,690 shares during the period. Finally, Empowered Funds LLC bought a new stake in shares of Kingsoft Cloud during the 4th quarter worth approximately $180,000. Institutional investors and hedge funds own 13.40% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently commented on KC shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kingsoft Cloud in a research report on Friday, July 17th. Morgan Stanley began coverage on Kingsoft Cloud in a research note on Tuesday, July 7th. They issued an "overweight" rating and a $15.00 price target for the company. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $17.00 price objective on shares of Kingsoft Cloud in a report on Thursday, July 16th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $17.15.

Kingsoft Cloud Company Profile

Kingsoft Cloud Holdings Limited NASDAQ: KC is a leading provider of cloud computing services in China, offering a comprehensive suite of infrastructure and platform solutions to enterprise customers. Established in 2012 as a subsidiary of Kingsoft Corporation, the company has grown into an independent public entity with dual listings, serving as a critical backbone for digital transformation across multiple industries. Headquartered in Beijing, Kingsoft Cloud leverages advanced technologies to optimize cloud operations and deliver scalable, reliable services.

The company's core offerings span Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), encompassing compute, storage, database, content delivery networks (CDN) and security solutions.

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