- NetEase’s third-quarter revenue was 26.21 billion yuan, missing the estimated 26.59 billion yuan.
- Revenue from Games and Related Value-Added Services slightly exceeded expectations at 20.86 billion yuan against an estimate of 20.71 billion yuan.
- Innovative Businesses and Others reported net revenue of 1.77 billion yuan, falling short of the estimated 2.07 billion yuan.
- Youdao’s net revenue was reported at 1.57 billion yuan, below the expected 1.69 billion yuan.
- Overall gross profit came in at 16.48 billion yuan, just shy of the anticipated 16.55 billion yuan.
- Gross profit for Games and Related Value-Added Services was 14.36 billion yuan, slightly over the estimate of 14.3 billion yuan.
- Youdao’s gross profit was recorded at 789.5 million yuan, under the estimated 856.7 million yuan.
- Innovative Businesses & Others gross profit was 671.0 million yuan, close to the estimate of 671.8 million yuan.
- Games and Related Value-Added Services gross profit margin was 68.8%, below the projection of 69.7%.
- Youdao’s gross profit margin was 50.2%, compared to an expected 51.6%.
- Innovative Businesses & Others achieved a gross profit margin of 37.8%, exceeding the estimate of 32.2%.
- Analyst ratings show 34 buys, 5 holds, and 0 sells for NetEase.
NetEase Inc on Smartkarma
Analysts on Smartkarma continue to closely monitor NetEase Inc, with recent research reports shedding light on the company’s performance and future outlook.
Ying Pan, a prominent analyst on the platform, provided insights on NetEase’s Q3 results, noting a revenue miss attributed to product aging but maintaining a BUY rating due to a promising pipeline. The target price was adjusted from US$122 to US$110, reflecting downward pressure from product aging. Another report by Ying Pan highlighted expectations of significant growth for NetEase in the second half of 2024 and 2025, particularly in the gaming sector. Maintaining a BUY rating with a target price of US$122, the report emphasizes the anticipated acceleration in game growth based on upcoming releases. These analyses offer valuable perspectives for investors considering NetEase as part of their portfolio.
A look at NetEase Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NetEase Inc has a positive long-term outlook as per Smartkarma Smart Scores which assess various aspects of the company. With high ratings in Dividend, Growth, and Resilience, the company seems well-positioned for sustained success. NetEase Inc, an Internet technology company based in China, focuses on email services, web portals, and online entertainment, notably in the online gaming sector. Its diversified offerings, including online advertising and e-commerce, contribute to its robust outlook.
Despite a lower Momentum rating, NetEase Inc‘s solid fundamentals in Value, Dividend, Growth, and Resilience indicate a promising future. Investors may find the company appealing for its strong performance in key areas. Overall, NetEase Inc seems poised for continued growth and stability in the dynamic Internet technology sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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