Kingsoft Cloud Holdings: An In-Depth Analysis of Upcoming Earnings Call

🌥️ Kingsoft Cloud Holdings (NASDAQ: KC) is expected to report its Q1 earnings results on May 23, 2023, at 8:15 AM EST. The company is a leading independent cloud service provider in China. Its services include cloud infrastructure, cloud computing, and cloud storage.

In this article, we will analyze Kingsoft Cloud’s past financials, price performance, recent news sentiment, and analysts’ estimates to provide a comprehensive analysis of the upcoming earnings call. We aim to provide an insightful assessment of the company’s potential future performance that will be of interest to investors.

Fundamental Analysis:

Kingsoft Cloud’s past year financials show a decline in net income from -553.2 million CNY in Q1 22 to -793.1 million CNY in Q3 22. However, there was a slight improvement in Q4 22, with net income of -508.9 million CNY. Total revenue has been consistent, with a slight increase from 1906.5 million CNY in Q2 22 to 2131.0 million CNY in Q4 22.

One crucial metric for investors to consider is diluted earnings per share (EPS). The company has reported negative EPS for the past year, with -2.25 million CNY in Q1 22 and -3.30 million CNY in Q3 and Q2 22. In Q4 22, the company reported an improvement with diluted EPS of -2.10 million CNY.

The recent price performance of Kingsoft Cloud has been disappointing for investors. The stock price has declined by 17.3% over the past five trading days, reaching a low of 4.2 and a high of 5.4, mainly due to negative news sentiment around the upcoming earnings call. The stock has also declined by 40.5% over the past month, reaching a low of 4.2 and a high of 8.0. However, Kingsoft Cloud’s stock price has shown some positive momentum over the past three months, increasing by 2.6%, reaching a low of 3.7 and a high of 10.1.

Technical Analysis:

Looking at the technical analysis, Kingsoft Cloud’s stock price is trading below its 50-day moving average (MA) of 5.5 and its 200-day MA of 6.8. This indicates that the stock is in a bear market, with investors being more cautious about the company’s potential future performance. The stock’s relative strength index (RSI) is 28.2, indicating an oversold position.

Historical Guidance:

Kingsoft Cloud has not provided any financial guidance for Q1 2023 or the full year; hence, investors rely on past financials to make an informed decision. However, investors should note that past performance does not guarantee future results.

Analysts Estimates:

According to analysts’ estimates, Kingsoft Cloud is estimated to report a loss of -2.58 million CNY in Q1 2023, which would be higher than the loss reported for Q4 2022. Six analysts have issued estimates for Kingsoft Cloud, with estimates ranging from -3.14 million CNY to -2.09 million CNY.

The average estimate for revenue is 2,228 million CNY, slightly lower than the total revenue reported in Q4 2022, which was 2,131 million CNY. The company’s actual financial performance may be different from analysts’ estimates.

Conclusion:

In conclusion, Kingsoft Cloud Holdings‘ upcoming earnings call will provide insights into the company’s financial performance for Q1 2023. The company’s past financials, recent price performance, and analysts’ estimates show that the company has reported a consistent total revenue, negative EPS, and net income over the past year.

The recent decline in stock price is mainly due to news sentiment about the earnings call, with the company not providing any financial guidance for Q1 2023. However, investors should note that past performance does not guarantee future results, and investing carries inherent risks. We encourage investors to tune in to the earnings call and listen to management’s updates and insights into the company’s potential future performance.