HUYA (NYSE:HUYA) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

HUYA (NYSE:HUYAGet Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.01), FiscalAI reports. The company had revenue of $250.68 million during the quarter, compared to analyst estimates of $251.85 million. HUYA had a negative net margin of 1.76% and a positive return on equity of 0.39%.

Here are the key takeaways from HUYA’s conference call:

  • HUYA reported Q1 total net revenue up 15% year over year to RMB 1.73 billion, with game-related services, advertising and other revenue surging 69% to RMB 627 million and reaching a record 36% of total revenue.
  • Goose Goose Duck Mobile continued to outperform, ranking No. 1 on the iOS free chart for much of the quarter and reaching the top 5 on the top-grossing chart in April, while management highlighted a summer WeChat mini-game launch and further monetization efforts ahead.
  • The company said it is evolving from a live-streaming platform into a full-service game services platform, using its streamer network, tournaments, publishing and AI tools to drive game item sales, advertising and publishing revenue.
  • HUYA said it is building out multiple AI initiatives across live streaming, game tools, IP companionship and game production, but expects AI to complement rather than replace top human streamers in the near term.
  • Margins improved in Q1, with gross margin rising to 14.6% and non-GAAP operating loss narrowing to RMB 3 million; management expects further margin expansion as higher-margin businesses scale, especially in the second half of the year.

HUYA Stock Down 4.1%

HUYA stock traded down $0.13 during midday trading on Thursday, reaching $2.96. The company’s stock had a trading volume of 751,054 shares, compared to its average volume of 1,742,431. HUYA has a fifty-two week low of $2.21 and a fifty-two week high of $4.93. The company has a market cap of $660.53 million, a P/E ratio of -49.24 and a beta of 0.94. The business has a 50-day simple moving average of $3.23 and a 200-day simple moving average of $3.30.

HUYA Announces Dividend

The firm also recently declared a special dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Wednesday, June 17th will be paid a $0.135 dividend. The ex-dividend date is Wednesday, June 17th. HUYA’s dividend payout ratio (DPR) is currently -4,766.67%.

HUYA announced that its board has authorized a share buyback plan on Wednesday, March 18th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

HUYA has been the topic of several analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of HUYA in a research note on Monday, April 27th. Morgan Stanley set a $3.40 price objective on HUYA in a research note on Wednesday, February 25th. Finally, Zacks Research cut HUYA from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, HUYA has a consensus rating of “Hold” and an average target price of $3.45.

Read Our Latest Research Report on HUYA

Hedge Funds Weigh In On HUYA

A hedge fund recently raised its stake in HUYA stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of HUYA Inc. Sponsored ADR (NYSE:HUYAFree Report) by 10.3% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 154,694 shares of the company’s stock after purchasing an additional 14,456 shares during the quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. owned approximately 0.07% of HUYA worth $497,000 as of its most recent filing with the SEC. Institutional investors and hedge funds own 23.20% of the company’s stock.

About HUYA

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HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android.

At the core of HUYA’s business are user-generated live streams hosted by professional gamers, influencers and esports organizations.

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Earnings History for HUYA (NYSE:HUYA)

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