JOYY's Earnings: A Preview

On Thursday, May 27, JOYY YY will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts are expecting JOYY's loss per share to be near $0.11 on sales of $599.86 million. JOYY reported a profit of $0.68 per share when it published results during the same quarter last year. Sales in that period totaled $1.01 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 116.18% decline in the company's earnings. Sales would have fallen 40.61% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of JOYY were trading at $84.07 as of May 25. Over the last 52-week period, shares are up 38.85%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. JOYY is scheduled to hold the call at 21:00:00 ET and can be accessed here.