- NetEase reported an adjusted net income from continuing operations per ADS of 14.81 yuan, falling short of the 15.03 yuan market estimate.
- The company’s total revenue was 27.89 billion yuan, missing the expected 28.4 billion yuan.
- Revenue from Games and Related Value-Added Services stood at 22.81 billion yuan, below the anticipated 23.37 billion yuan.
- Innovative Businesses and Others generated net revenue of 1.70 billion yuan, which is under the forecast of 1.81 billion yuan.
- Youdao surpassed expectations, with a net revenue of 1.42 billion yuan versus the estimate of 1.33 billion yuan.
- Cloud Music achieved net revenue of 1.97 billion yuan, slightly under the estimated 1.99 billion yuan.
- The gross profit for the quarter was 18.05 billion yuan, close to the expected 18.07 billion yuan.
- Games and Related Value-Added Services recorded a gross profit of 16.01 billion yuan, marginally exceeding the estimate of 15.96 billion yuan.
- Youdao’s gross profit was reported at 609.4 million yuan, falling short of the 644.1 million yuan projection.
- Cloud Music posted a gross profit of 709.9 million yuan, surpassing the 697.9 million yuan estimate.
- Innovative Businesses & Others achieved a gross profit of 719.0 million yuan, exceeding the anticipated 678.2 million yuan.
- Analyst recommendations included 31 buys, 4 holds, and 1 sell.
NetEase Inc on Smartkarma
Analysts on Smartkarma have recently covered NetEase Inc, including insights from Ying Pan and Ke Yan, CFA, FRM. Ying Pan‘s report titled “NetEase Inc (NTES US, BUY, TP US$136) TP Change: C1Q25 Review: Game Upcycle + Margin Leverage” highlights NetEase’s beat on revenue and profit estimates in Q1. The good performance was attributed to game revenue and AI-enhanced advertising, leading to improved margins. The target price was raised to $136, with a focus on the ongoing game revenue upcycle.
In another report by Ying Pan, “NetEase (NTES US, BUY, TP US$122) TP Change: C4Q24 Review: Getting Ready for Accelerated Growth,” NetEase’s strong financial performance and product-driven revenue growth strategies earned it a top pick status in the gaming sector. The target price was bumped up to US$122, emphasizing the company’s potential for accelerated growth spurred by mobile and PC game segments. Ke Yan, CFA, FRM also provided analysis on Netease’s game approval status in China, noting one game approval for the company in February amid the slow pace of regulatory approvals for large players.
A look at NetEase Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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 an Internet technology company based in China, known for its email service, web portal, online entertainment, and online gaming services. The company has received positive ratings in several key areas according to Smartkarma Smart Scores. With a high score in Resilience and Dividend, NetEase Inc. demonstrates strong stability and a commitment to rewarding its investors. Additionally, its Growth and Momentum scores indicate promising prospects for expansion and market performance in the long run. While its Value score is moderate, the overall outlook for NetEase Inc. appears favorable, suggesting potential growth and resilience in the future.
In summary, NetEase Inc. is a Chinese Internet company with a diversified portfolio of services and applications. The company has been rated highly for its resilience, dividend payouts, growth potential, and market momentum, showcasing a robust foundation for long-term success. With a solid presence in online entertainment, gaming, advertising, search, mobile applications, and e-commerce, NetEase Inc. is well-positioned for sustained growth and innovation in the ever-evolving digital landscape.
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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