The full-year results for HUYA Inc. (NYSE:HUYA) were released last week, making it a good time to revisit its performance. Revenues were in line with expectations, at CN¥7.0b, while statutory losses ballooned to CN¥0.84 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HUYA after the latest results.
Following the recent earnings report, the consensus from eleven analysts covering HUYA is for revenues of CN¥6.82b in 2024. This implies a noticeable 2.5% decline in revenue compared to the last 12 months. HUYA is also expected to turn profitable, with statutory earnings of CN¥0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.84b and earnings per share (EPS) of CN¥0.18 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
The consensus price target held steady at US$4.12, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic HUYA analyst has a price target of US$7.70 per share, while the most pessimistic values it at US$2.28. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.5% by the end of 2024. This indicates a significant reduction from annual growth of 4.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.1% annually for the foreseeable future. It's pretty clear that HUYA's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$4.12, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on HUYA. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for HUYA going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for HUYA that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.