NetEase.com Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

NetEase.com Inc. (NASDAQ:NTES) reported net income above Wall Street’s expectations for the third quarter. NetEase.com is a China-based Internet technology company, which is engaged in the development of applications, services, and other technologies for the Internet in China.

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NetEase.com Earnings Cheat Sheet for the Third Quarter

Results: Net income for NetEase.com Inc. rose to $129.5 million (99 cents per share) vs. $87.5 million (70 cents per share) in the same quarter a year earlier. This marks a rise of 48% from the year earlier quarter.

Revenue: Rose 50.4% to $314.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NTES beat the mean analyst estimate of 86 cents per share. It beat the average revenue estimate of $277.5 million.

Quoting Management: “Open beta testing and successful promotional activities for Heroes of Tang Dynasty contributed to record revenue and user statistics for this game during the quarter, and we plan to release its first expansion pack in December. In conjunction with its ninth commercial anniversary on August 15, Westward Journey Online II continued to perform well during the quarter. In addition, we launched our latest expansion packs for Westward Journey Online III and Warsong of Westward Journey in August, and Fantasy Westward Journey in September. As a follow up to the success of Ghost’s unlimited closed beta testing, we launched its full scale closed beta testing in September, and reached record high PCU in October. To further extend our games pipeline and address the expanding web-based game market in China, we initiated closed beta testing for two new web-based games during the third quarter.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 13 cents in the second quarter, by 15 cents in the first quarter, and by 13 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 94 cents per share from 90 cents. For the fiscal year, the average estimate has moved up from $3.37 a share to $3.54 over the last ninety days.

Competitors to Watch: Sohu.com Inc. (NASDAQ:SOHU), Baidu.com, Inc. (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), Giant Interactive Group Inc (NYSE:GA), Perfect World Co., Ltd. (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), The9 Limited (NASDAQ:NCTY), Shanda Games Limited (NASDAQ:GAME), DangDang Inc. (NYSE:DANG), and China Telecom Corp. Ltd. (NYSE:CHA).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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