HUYA Inc. (NYSE:HUYA) is scheduled to report Q3 earnings results before markets open for trading on November 11, 2020.
The company is expected to report earnings of 元1.40/share on revenue of 元2.845 billion. The consensus earnings per share (EPS) of 元1.40/share is based on a poll of 5 analysts and represents a growth in eps of 61.0% over the same quarter last year, when the company reported earnings of 元0.87/share.
The revenue forecast of 元2.845 billion based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 25.6%. Last year the company reported 元2.265 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.
What are your expectations from HUYA Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.0%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 11, 2020||$24.04||$25.73||7.0%||Increase|
|May 20, 2020||$18.75||$17.09||−8.9%||Decline|
|March 16, 2020||$15.40||$14.85||−3.6%||Decline|
|November 12, 2019||$25.35||$24.18||−4.6%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.07, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.07 implies a 1.9% chance of earnings manipulation.
Fundamentals And Technical Analysis
HUYA Inc. is currently trading at $21/share, down −4.5% for the day. The company is trading at approximately 69.0% of its 52-week high of $30.62/share. The company’s stock price is down −18.4% since the last earnings report and down −4.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 44.10 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 45.29 and a forward P/E multiple of 26.39.
HUYA Inc.’s current share price also implies a price-to-book (P/B) multiple of 3.27. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$21|
|P/E Ratio (Fwd)||26.4x|
|Total Debt / Total Capital||0.3%|
|Levered Free Cash Flow||3.1x|
|EV / EBITDA||35.5x|
HUYA Inc. is a mid-cap stock with a market capitalization of $4.893 billion and a total enterprise value of $3.385 billion. The company operates in the Communication Services sector and the Entertainment industry.
HUYA Inc., through its subsidiaries, operates game live streaming platforms in the People’s Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. Its live streaming content covers a library of games, including mobile, PC, and console games; and other entertainment genres, such as talent shows, anime, outdoor activities, live chats, online theatre, and other genres. The company operates Nimo TV, a game live streaming platform primarily in Southeast Asia and Latin America. It also provides online advertising and marketing services. In addition, the company provides software development and Internet value added services. As of December 31, 2019, its live streaming content covered approximately 3,800 games. The company was founded in 2014 and is headquartered in Guangzhou, the People’s Republic of China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.