HUYA (NYSE:HUYA) Announces Quarterly Earnings Results

HUYA (NYSE:HUYA) announced its quarterly earnings results 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 business had revenue of $250.68 million during the quarter, compared to the consensus estimate of $251.85 million. HUYA had a negative net margin of 1.77% and a positive return on equity of 0.50%.

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 8.4%

NYSE HUYA traded down $0.28 on Tuesday, hitting $3.01. 1,071,461 shares of the company were exchanged, compared to its average volume of 1,754,945. The firm has a 50 day moving average of $3.26 and a two-hundred day moving average of $3.30. The company has a market cap of $671.71 million, a P/E ratio of -50.24 and a beta of 0.94. HUYA has a 1-year low of $2.21 and a 1-year high of $4.93.

HUYA Announces Dividend

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

HUYA declared that its Board of Directors has initiated a stock buyback program on Wednesday, March 18th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

An institutional investor recently raised its position in HUYA stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of HUYA Inc. Sponsored ADR (NYSE:HUYA) by 10.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 154,694 shares of the company’s stock after buying an additional 14,456 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. owned 0.07% of HUYA worth $497,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 23.20% of the company’s stock.

Analyst Ratings Changes

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

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.