JOYY JOYY 2025Q1 Earnings Preview Upside Potential on Strong Return on Equity Expectations

AinvestwebFriday, May 23, 2025 7:06 pm ET
1min read
Forward-Looking Analysis
JOYY is set to report its Q1 2025 earnings on May 26, 2025. Analysts project a modest earnings growth of 0.59%, with EPS expected to increase slightly from $3.37 to $3.39 per share. The company's revenue forecast indicates a decline of 13.96% annually, significantly below the US Internet Content & Information industry average of -1.05%. Despite this, is expected to maintain a strong return on equity, forecast at 76.45%, well above industry and market averages. The company's Q1 2025 revenue guidance is between $482 million and $490 million. While these figures suggest challenges in revenue growth, JOYY's efficiency in generating returns on equity and assets could attract investor confidence. Analysts remain optimistic about JOYY's ability to efficiently generate returns, as evidenced by a forecast return on assets of 47.86%.

Historical Performance Review
In Q4 2024, JOYY reported revenue of $422.42 million and a net loss of $386.54 million, translating to an EPS of -$0.28. The company achieved a gross profit of $203.78 million, highlighting operational efficiency despite financial challenges. The negative net income underscores ongoing financial struggles, although the gross profit remains a positive indicator of underlying business health.

Additional News
JOYY Inc. is poised to release its Q1 2025 financial results on May 26, 2025. For this period, the company anticipates net revenues between USD 482 million and USD 490 million, reflecting current preliminary expectations. JOYY's projected earnings growth rate is not expected to surpass the industry average of 4.9%, nor the overall US market's average growth rate of 59.06%. Despite a challenging revenue growth forecast of -13.96% annually, JOYY's robust return on equity of 76.45% highlights its capacity to efficiently generate shareholder value, positioning it favorably against industry peers.

Summary & Outlook
JOYY's financial outlook remains a mix of challenges and opportunities. While revenue is expected to decline, the company's strong return on equity and assets indicates operational efficiency and a potential upside for investors. Negative net income in the previous quarter highlights ongoing financial struggles, but analysts are optimistic about the company's ability to generate returns. Given these factors, the outlook is cautiously bullish, contingent on JOYY's ability to leverage its operational strengths to overcome revenue growth challenges and improve profitability.