YY Inc Earnings: Here’s Why Investors are Buying Shares Now

YY Inc (ADR) (NASDAQ:YY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 17.83%.

YY Inc (ADR) Earnings Cheat Sheet


Revenue: Rose 125.38% to $66.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.21. It beat the average revenue estimate of $55.63 million.

Quoting Management: Mr. David Xueling Li, Chief Executive Officer of YY, stated, “We are very proud of our strong operational performance this quarter, which lead to robust top line growth and continued margin expansion. Driven by 170% year-over-year growth in the number of paying users on our YY Music platform, revenues exceeded our expectations and our total paying user numbers grew more than 50% year-over-year. These results demonstrate the unique and growing value proposition that our platform provides our large audience base, as more Chinese internet users increasingly embrace real-time online interactive entertainment.”

Key Stats (on next page)…

Revenue increased 31.41% from $50.68 million in the previous quarter. EPS increased 13.04% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $0.23. For the current year, the average estimate has moved up from a loss of $0 to a profit of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)