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

HUYA (NYSE:HUYA) released its quarterly earnings results on Tuesday. The company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.01), FiscalAI reports. The company had revenue of $250.68 million during the quarter, compared to analysts’ expectations of $251.85 million. HUYA had a positive return on equity of 0.50% and a negative net margin of 1.77%.

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 Trading Down 8.1%

NYSE HUYA traded down $0.27 during trading on Tuesday, reaching $3.02. The company’s stock had a trading volume of 1,050,758 shares, compared to its average volume of 1,754,945. The firm has a 50 day moving average price of $3.26 and a 200 day moving average price of $3.30. HUYA has a 12 month low of $2.21 and a 12 month high of $4.93. The firm has a market capitalization of $673.94 million, a price-to-earnings ratio of -50.24 and a beta of 0.94.

HUYA Announces Dividend

The company also recently announced a special dividend, which will be paid on Tuesday, June 30th. Investors of record on Wednesday, June 17th will be issued a dividend of $0.135 per share. The ex-dividend date is Wednesday, June 17th. HUYA’s payout ratio is presently -4,766.67%.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on HUYA shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of HUYA in a report on Monday, April 27th. Morgan Stanley set a $3.40 target price on HUYA in a research note on Wednesday, February 25th. Finally, Zacks Research downgraded HUYA from a “strong-buy” rating to a “hold” rating in a report on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, HUYA presently has a consensus rating of “Hold” and an average price target of $3.45.

HUYA announced that its Board of Directors has initiated a stock buyback program on Wednesday, March 18th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in HUYA stock. Public Employees Retirement System of Ohio boosted its stake in HUYA Inc. Sponsored ADR (NYSE:HUYA) by 8.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 245,295 shares of the company’s stock after purchasing an additional 19,353 shares during the period. Public Employees Retirement System of Ohio owned about 0.11% of HUYA worth $817,000 at the end of the most recent reporting period. 23.20% of the stock is currently owned by institutional investors and hedge funds.

About HUYA

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.