HUYA (NYSE:HUYA) Issues Earnings Results

HUYA (NYSE:HUYA) posted its earnings results on Tuesday. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.01), FiscalAI reports. HUYA had a positive return on equity of 0.39% and a negative net margin of 1.76%.The business had revenue of $250.68 million during the quarter, compared to analysts’ expectations of $251.85 million.

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 3.7%

Shares of NYSE:HUYA traded down $0.12 during trading on Thursday, reaching $2.97. The company had a trading volume of 817,986 shares, compared to its average volume of 1,743,202. The company has a fifty day moving average of $3.23 and a two-hundred day moving average of $3.30. The stock has a market capitalization of $662.77 million, a P/E ratio of -49.08 and a beta of 0.94. HUYA has a 12 month low of $2.21 and a 12 month high of $4.93.

HUYA Dividend Announcement

The business 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 of this dividend is Wednesday, June 17th. HUYA’s payout ratio is currently -4,766.67%.

HUYA declared that its Board of Directors has approved a share buyback program on Wednesday, March 18th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

An institutional investor recently raised its position in HUYA stock. Public Employees Retirement System of Ohio lifted its holdings in HUYA Inc. Sponsored ADR (NYSE:HUYA) by 8.6% in the third quarter, according to the company in its most recent filing with the SEC. The fund owned 245,295 shares of the company’s stock after acquiring an additional 19,353 shares during the quarter. Public Employees Retirement System of Ohio owned 0.11% of HUYA worth $817,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 23.20% of the company’s stock.

HUYA Company Profile

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.