YY Inc (ADR) (NASDAQ:YY) has been fluctuating in the stock market, with a surge in the last 5 trading sessions. Much of the volatility in the stock has been driven by earnings estimates, posted by analysts, for the company’s 2Q2016. YY is expected to report quarterly results on August 11, with analysts anticipating the company to report EPS of $0.93. This figure is 13.41% higher than that of the preceding year.
Analysts at the Wall Street believe that YY would be able report a 63.11% growth in its EPS on a quarter-over-quarter basis. However, to do so YY would have to report a profit of $55.22 million, for a P/E ratio of 10.64. For its 1Q2016 results, YY reported a surge of 43.4% in revenues, to reach $255.8 million. This was also coupled with a surge of 45.7% increase in operating expenses. Moreover, this translated to $32.3 million as net income for the company. In its balance sheet for the 1Q2016, the company reported cash of $92 million, with short term deposits of $421.3 million. As of March 31, 2016, YY had 1.1 billion shares outstanding.
These estimates have been coupled with the news that YY Inc. would not be going private. YY Inc. was set to go private, as part of a non-binding going private proposal, from the Buyer Group. A letter from the group indicated that the proposal was withdrawn, after carefully reviewing the unfavorable market conditions.
Following the cancellation of the said proposal, YY’s board of directors has decided to reduce the number of issued shares of YY. As such, the company would soon be conducting a share buyback program, over the next 12-months. The company plans to buyback an estimated $200 million worth of its shares, including its convertible notes, which are set to mature in 2019. Furthermore, YY plans to use its cash available, in order to finance the program.
YY Inc (ADR) (NASDAQ:YY) closed at a share price of $39.37, at the end of the July 14 trading session.