JOYY

’s

YY

upcoming second-quarter 2021 results are expected to have benefited from Bigo Live’s robust performance. The company has been riding on strong demand for user-hosted live-streaming sessions as well as user-created short-form videos.

For second-quarter 2021, JOYY expects revenues between $645 million and $663 million, which indicates year-over-year growth in the range of 36.2%-40%.

The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 4 cents per share, improving from a loss of 30 cents over the past 30 days.

Let’s see how things have shaped up for JOYY prior to this announcement.

Factors to Note

JOYY’s second-quarter results are expected to have benefited from its overseas expansion and plan to expand footprint into global live-streaming and short video markets.

Solid adoption of Likee is anticipated to have driven Bigo Live’s top-line growth in the to-be-reported quarter. In first-quarter 2021, more than 17% of Bigo Live’s active users hosted live streaming sessions and more than 19% of Likee’s active users created their own short-form videos.

In first-quarter 2021, Bigo Live’s monthly active user base grew 9% year over year to $29.1 million, while its revenues jumped 106.2% year over year.

JOYY’s expanding partner base, which includes the likes of gaming companies, TV show producers and entertainment agencies, has helped it attract high-quality live streamers and content creators to its platform. This has helped JOYY to launch premium video content that is expected to have attracted new audience to the platform.

JOYY’s focus on reducing advertising spend on Likee as well as HAGO, and utilizing more funds to develop content and the social ecosystem, is expected to have hurt user base growth rate in the second-quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive

Earnings ES

P and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

JOYY has an Earnings ESP of +42.86% but a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Stocks to Consider

Here are some companies worth considering as per our model, as these have the right combination of elements to beat on earnings this reporting cycle:

CyberArk Software


CYBR

has an Earnings ESP of +37.93% and a Zacks Rank of 2. You can see

the complete list of today’s Zacks #1 Rank stocks here

.

Agilent


A

has an Earnings ESP of +1.16% and is #2 Ranked.

Cisco Systems


CSCO

has an Earnings ESP of +1.82% and a Zacks Rank #3.

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