NetEase Inc (NTES) Earnings Miss Estimates Despite Strong Gross Profit Margins

NetEase Inc on Smartkarma

Analyst coverage on NetEase Inc by Ying Pan on Smartkarma indicates a bullish sentiment towards the company’s performance. In the report titled “NetEase, Inc. (NTES US, BUY, TP US$122) TP Change: Strong Games Pipelines Offering More Potentials,” NetEase’s mixed Q4 results were noted, with a positive outlook driven by the accelerated launch of Naraka Mobile. The price target was raised to US$122, reflecting optimism about the upcoming pipeline and implying a 15.4X PE, positioning it 12% above the current price.

Another report by Ying Pan on Smartkarma, “NetEase, Inc. (NTES US, BUY, TP US$118) TP Change: Strong In-House Game Performance Drives Margins,” highlighted NetEase’s robust revenue growth in C4Q23, attributed to the success of Justice Mobile and a low-price strategy for legacy titles. This performance led to an increased target price of US$118, emphasizing the company’s rich and diversified pipeline driving margins.

A look at NetEase Inc Smart Scores

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. is showing promising signs for its long-term outlook based on SmartKarma’s Smart Scores. With a strong focus on growth and resilience, the company scored high in these areas. NetEase’s emphasis on developing innovative technologies to stay ahead in the competitive Internet industry is reflected in its impressive Growth and Resilience scores.

Furthermore, NetEase Inc. also scored well in Dividend, indicating its commitment to rewarding its shareholders. While the company’s Value and Momentum scores are relatively moderate, the solid performance in other key areas suggests a positive trajectory for NetEase Inc. As an Internet technology company in China, NetEase continues to expand its diverse range of services, including online gaming and e-commerce, positioning itself for sustained growth in the future.

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