JOYY Earnings On Deck With Stock (NASDAQ:JOYY) Outperforming

JOYY's stock (NASDAQ: JOYY) is trading strongly into earnings, up 32% YTD, and holding strongly above the $50 level as markets await the latest set of financials after today's closing bell.

The upcoming earnings announcement carries significant weight. Analysts expect JOYY Inc. to report earnings per share (EPS) of $0.89, down from $1.17 a year ago, reflecting a projected 24% decline.

Revenue is estimated at around $519.8 million, representing an 8% year-over-year drop from $565.1 million.

JOYY's recent financial performance reveals a company in transition. In the first quarter of 2025, total net revenues declined by 12.4% year-over-year to $494.4 million. The primary culprit was a 20.3% drop in live streaming revenues, which fell to $371.3 million. Management attributed this decline to adjustments in the interactive features of its non-core audio livestreaming products, ostensibly to enhance compliance.

However, there's a silver lining. Non-livestreaming revenues surged by 25.3% year-over-year, reaching $123.0 million and now accounting for nearly 25% of total net revenues. This growth suggests that JOYY's efforts to diversify its revenue streams are gaining traction. The company's focus on new growth areas appears to be paying off, providing a crucial buffer against the challenges in its core live streaming business.

JOYY has been actively reshaping its business through strategic transactions and shareholder-friendly initiatives. The company completed the sale of its YY Live business to Baidu in February 2025, receiving an additional $240 million in cash. This transaction resulted in a substantial gain of approximately $1.9 billion in net income from discontinued operations.

Furthermore, JOYY has initiated a quarterly dividend program, planning to distribute approximately $600 million over three years. The current quarterly dividend stands at $0.94 per share, translating to an annual yield of 3.7%.

Additionally, the company repurchased $22.5 million worth of shares between January and May 2025, signaling confidence in its long-term prospects. Also the company has repurchased 1.9 million of its ADSs for $65.5 million during Q4 2024 and announced plans to buy back up to $400 million of its shares by the end of November 2025.

Despite these positive developments, analyst sentiment remains cautious. The consensus rating on JOYY is currently a “Hold,” with a 12-month price target of $53.33. This implies a stock price that has caught up with analyst expectations, and potentially one that is fully valued unless a surprise is on deck. We will know soon enough.