China’s Netease $NTES Earnings Westward Journey

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  • #10951
    Super Harley
    Participant

    [article]120[/article]

    #10957
    Helmholtz Watson
    Participant

    Lets see if NTES consolidation can fuel a rally – been an amazing run over the past year. A little $TTWO action in order?

    #11061
    ThePitBoss
    Participant

    NetEase $NTES second-quarter sales and earnings beat Wall Street’s expectations, but shares fell in after-hours trading after the big rip into them – they closed regular session Wednesday up 1.9% to 315.05.

    Weibo was also down by as much as 7% at one point during regular trading but rebounded to end the day up more than 1%.

    Earnings: NetEase earned an adjusted $3.86 per American depositary share, up 26% from the same period last year, on sales of $1.97 billion, up 48%. Analysts were expecting $3.82 and $1.9 billion.

    For Q3 Wall Street modeling NetEase earnings to rise 15% to adjusted $3.56 per U.S. share, with sales jumping 40% to $1.92 billion.

    “Our online games, advertising services and e-commerce divisions continue to grow,” NetEase Chief Executive William Ding said in a news release. “While e-commerce is becoming an increasingly important revenue contributor, our self-developed mobile games remain our primary growth engine.”

    Stock was down 3% after earnings

    #11063
    ThePitBoss
    Participant

    Selling intensifying as profit taking and general selling on markets picks up NetEase Inc (ADR) NASDAQ: NTES – Aug 10, 11:19 AM EDT
    286.70 -28.35 (- 9.00%)

    #11065
    Super Harley
    Participant

    CEO William Ding on the company’s earnings call “Profitability is not a near-term focus” on e-commerce, adding that “our focus is still mainly to grow and market share; we want these two platforms (Kaola and Yanxuan) and our services and products to cover more families and users.”

    That got some selling going

    #11066
    Super Harley
    Participant

    CLSA downgrade NTES shares to Underperform

    Says slowdown in online games where revenue fell 12% Q/Q and e-commerce’s drag on the company’s margins.

    The stock’s not cheap at a 21 P/E ratio, says analyst Man Ho Lam, who has a price target of $340 which is 7.9% upside from yesterday’s close, and now 18.5% upside from today’s lower price.

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