NEW YORK (TheStreet) -- YY Inc.
(YY - Get Report) stock is sliding on Tuesday, despite the Chinese search engine posting above-consensus earnings in the first quarter and issuing strong guidance.
By late morning, shares had fallen 6.7% to $57.82.
Over the three months to March, YY earned 56 cents a share, 6 cents higher than analysts surveyed by Thomson Reuters forecast. Revenue of $107.2 million beat forecasts of $104 million.
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For its second quarter, management expects revenue growth of 82% to 85%. Analysts were expecting 75% growth.
TheStreet Ratings team rates YY INC -ADR as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YY INC -ADR (YY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
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