NetEase (NASDAQ:NTES) Releases Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• NetEase reported quarterly earnings of $1.87 per share, missing the consensus estimate of $2.04 by $0.17.
• The company's stock dropped 3.9% to $129.67 following the earnings announcement, with significant trading volume of over 2.16 million shares.
• Analysts have mixed ratings for NetEase, with a consensus rating of Moderate Buy and an average target price of $120.00.

NetEase (NASDAQ:NTES - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $1.87 earnings per share for the quarter, missing the consensus estimate of $2.04 by ($0.17), Zacks reports. NetEase had a return on equity of 23.08% and a net margin of 30.12%.

NetEase Stock Down 3.9%

NASDAQ:NTES traded down $5.23 during mid-day trading on Thursday, hitting $129.67. 2,169,362 shares of the company traded hands, compared to its average volume of 731,442. The stock's fifty day moving average price is $131.96 and its 200-day moving average price is $114.70. NetEase has a one year low of $75.85 and a one year high of $141.45. The firm has a market cap of $82.16 billion, a price-to-earnings ratio of 18.66, a price-to-earnings-growth ratio of 4.68 and a beta of 0.67.

Hedge Funds Weigh In On NetEase

A number of hedge funds have recently made changes to their positions in NTES. Strs Ohio bought a new position in shares of NetEase in the first quarter worth about $63,000. EverSource Wealth Advisors LLC boosted its stake in shares of NetEase by 106.9% in the second quarter. EverSource Wealth Advisors LLC now owns 542 shares of the technology company's stock worth $73,000 after acquiring an additional 280 shares during the period. Transamerica Financial Advisors LLC bought a new position in shares of NetEase in the second quarter worth about $159,000. Baird Financial Group Inc. bought a new position in shares of NetEase in the second quarter worth about $216,000. Finally, Peapack Gladstone Financial Corp bought a new position in shares of NetEase in the second quarter worth about $286,000. Institutional investors own 11.07% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. JPMorgan Chase & Co. lowered NetEase from an "overweight" rating to a "neutral" rating and lifted their price objective for the stock from $135.00 to $140.00 in a report on Monday, July 28th. Barclays lifted their price objective on NetEase from $104.00 to $118.00 and gave the stock an "equal weight" rating in a report on Friday, May 16th. Deutsche Bank Aktiengesellschaft assumed coverage on NetEase in a report on Monday, May 12th. They issued a "buy" rating and a $130.00 price objective for the company. Finally, Wall Street Zen raised NetEase from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. Two research analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $120.00.

NetEase Company Profile

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.

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