Earnings Outlook For NetEase

NetEase NTES will release its quarterly earnings report on Thursday, 2024-11-14. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate NetEase to report an earnings per share (EPS) of $1.84.

Investors in NetEase are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

The company's EPS beat by $0.01 in the last quarter, leading to a 0.21% drop in the share price on the following day.

Here's a look at NetEase's past performance and the resulting price change:

Market Performance of NetEase's Stock

Shares of NetEase were trading at $78.47 as of November 12. Over the last 52-week period, shares are down 30.16%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on NetEase

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding NetEase.

A total of 3 analyst ratings have been received for NetEase, with the consensus rating being Buy. The average one-year price target stands at $101.67, suggesting a potential 29.57% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of and Electronic Arts, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for and Electronic Arts are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

NetEase ranks in the middle among its peers for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity.

All You Need to Know About NetEase

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).

Unraveling the Financial Story of NetEase

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: NetEase displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 6.14%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 26.52%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): NetEase's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.24%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): NetEase's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 3.57%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

To track all earnings releases for NetEase visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.