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JOYY (YY) Set to Report Q1 Earnings: What's in the Cards?

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JOYY (YY - Free Report) is expected to release its first-quarter 2024 results on May 28.

JOYY expects revenues between $543 million and $560 million.

The Zacks Consensus Estimate is currently pegged at $553.36 million, indicating a decline of 5.19% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 84 cents per share, constant over the past 30 days. YY reported earnings of 64 cents in the year-ago quarter.

JOYY Inc. Sponsored ADR Price and EPS Surprise

JOYY Inc. Sponsored ADR Price and EPS Surprise

JOYY Inc. Sponsored ADR price-eps-surprise | JOYY Inc. Sponsored ADR Quote

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 177.17%.

Let’s see how things have shaped up for JOYY prior to this announcement.

Factors to Note

JOYY's first-quarter performance is expected to have benefited from its core business segment, BIGO, which includes social products like BIGO Live, Likee and Hago.

In the fourth quarter of 2023, BIGO recorded revenues of $491 million, with a year-over-year increase of 3.1%. BIGO also saw a notable uptick in the total number of paying users, which increased by 7.9% to 1.67 million.

BIGO Live has maintained user growth momentum, with a year-over-year increase in monthly active users by 4.5% in the fourth quarter of 2023 and positive trends in key regions such as Europe, Eastern Pacific and the Middle East. This is expected to have bolstered JOYY’s performance in the first quarter. 

Continued investment in content creation and user engagement activities, such as the UGC incentive program and events like the BIGO Awards Gala, are expected to have attracted more users and streamers.  

BIGO’s social product Likee’s new features, such as text and image posting, user subscriptions for videos, and interactive games, along with Hago’s innovative events and operational features, are expected to have enhanced user experience and engagement in the to-be-reported quarter.

JOYY has been actively exploring new monetization avenues beyond livestreaming. In 2023, non-livestreaming businesses contributed 12.7% to total revenues, up from 5.4% in 2021. This diversification is expected to have further expanded, providing additional revenue streams in the to-be-reported quarter. 

However, the current macroeconomic conditions with high inflation and increased interest rates are likely to have dented consumer spending in first-quarter 2024.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

JOYY has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases: 

Dell Technologies (DELL - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

Dell Technologies shares have increased 100.8% year to date. DELL is set to report first-quarter fiscal 2025 results on May 30.

Broadcom (AVGO - Free Report) has an Earnings ESP of +3.66% and a Zacks Rank #3 at present.

Broadcom shares have rallied 24.8% year to date. AVGO is scheduled to release second-quarter fiscal 2024 results on Jun 12.   

HP (HPQ - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #3.  

The stock has increased 8.5% year to date. HPQ is set to report its second-quarter fiscal 2024 results on May 29.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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