NEW YORK (TheStreet) -- Shares of YY (YY - Get Report) were gaining 8.8% to $60 after-hours Thursday after the Chinese social platform provider beat analysts' estimates for earnings in the fourth quarter.
YY reported earnings of $1.04 (6.74 yuan) a share for the fourth quarter, beating analysts' estimates of 85 cents a share. Revenue grew 91.1% year over year to $188.7 million (1.12 billion yuan), above analysts' estimates of $178.08 million.
The company said the number Mobile YY monthly active users grew to 30 million in the fourth quarter, a 32% increase compared to the third quarter, and an 80% increase from the year-ago quarter. The number of paying Mobile YY users grew 81% from the third quarter.
YY said that it expects to report revenue of 1.06 billion yuan to 1.08 billion yuan for the first quarter of 2015.
TheStreet Ratings team rates YY INC -ADR as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YY INC -ADR (YY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: YY Ratings Report