Cheetah Mobile Announces $100 Million Stock Buyback; Shares Rise 6%
Shares in Cheetah Mobile jumped more than 6 percent to $9.60 each intraday Thursday.
The stock of Cheetah Mobile Inc. (NYSE: CMCM) was trading up more than 6 percent Thursday afternoon in New York on the announcement that the company plans a buyback of shares worth $100 million.
The repurchase program would occur over the next 12 months, the Beijing-based internet company said, and would reflect its belief the company's shares are "a good investment."
"Cheetah Mobile continues to generate substantial earnings and free cash flow," Cheetah's chairman and chief executive officer, Sheng Fu, said in a statement today.
In response, the company's stock jumped 58 cents to $9.60 per American depositary share in the afternoon trading.
Shares in Cheetah Mobile jumped more than 6 percent to $9.60 a share intraday Thursday.
(Source: Thomson Reuters Eikon)
"Driven by our mobile utility products business in the domestic market, and our mobile game operations, we expect our total revenues to recover its growth trend in the second half of 2018," Fu continued.
"In addition, our AI technology business has made solid progress, which has positioned us well in the post-mobile era. We are confident in the long-term outlook for our business."
In August, Cheetah posted stronger-than-expected results for the second quarter, with earnings 180 percent more than a year ago, though revenue declined 8 percent to $166.8 million.
As of June 30, the company said it had $531.2 million in cash, cash equivalents, restricted cash, and short-term investments.