- NetEase’s adjusted net income from continuing operations per ADS was 17.51 yuan, surpassing the estimate of 13.73 yuan.
- Total revenue for the first quarter reached 28.83 billion yuan, beating the estimated 28.49 billion yuan.
- Revenue from Games and Related Value-Added Services amounted to 24.05 billion yuan, above the anticipated 23.08 billion yuan.
- Innovative Businesses and Others reported net revenue of 1.62 billion yuan, which was lower than the projection of 1.87 billion yuan.
- Youdao’s net revenue came in at 1.30 billion yuan, falling short of the expected 1.43 billion yuan.
- Cloud Music generated net revenue of 1.9 billion yuan, slightly below the estimate of 2.06 billion yuan.
- The company’s gross profit was 18.48 billion yuan, higher than the forecasted 17.57 billion yuan.
- Games and Related Value-Added Services gross profit reached 16.55 billion yuan, exceeding the forecast of 15.61 billion yuan.
- Youdao’s gross profit was 614.2 million yuan, below the expected 706.4 million yuan.
- Innovative Businesses & Others achieved a gross profit of 629.8 million yuan, less than the estimated 664.4 million yuan.
- The stock has strong analyst support with 36 buy ratings, 3 hold ratings, and no sell ratings.
NetEase Inc on Smartkarma
Analysts on Smartkarma have provided bullish insights on NetEase Inc, a prominent player in the gaming sector. Ying Pan, in the report titled ‘[NetEase (NTES US, BUY, TP US$122) TP Change]: C4Q24 Review: Getting Ready for Accelerated Growth‘, highlighted NetEase’s strong financial performance and focus on product-driven revenue growth. The raised price target to US$122 and top pick status reflect the anticipation of accelerated growth driven by mobile and PC game segments. Ke Yan, CFA, FRM, in the report ‘Tencent/Netease: One Game Approval for Netease in Feb‘, noted the game approval issued for Netease in February, showcasing positive momentum amidst a general industry slowdown, positioning Netease favorably.
In another report by Ying Pan, ‘[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Growth Rebounds Ahead from Both PC and Mobile‘, the solid C3Q24 revenue performance of NetEase from PC games offset the decline in mobile game revenue. The raised price target of US$118 reflects optimism towards the imminent pipeline launches for mobile games and the significant outperformance of PC games. These reports collectively paint a picture of growth and opportunity for NetEase Inc as it navigates the dynamic gaming landscape.
A look at NetEase Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
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
In analyzing the Smartkarma Smart Scores for NetEase Inc, the company demonstrates a positive long-term outlook across multiple key factors. With strong scores in Growth, Dividend, Resilience, and Momentum, NetEase Inc showcases a promising future in the competitive market. The company’s high scores in Resilience and Momentum indicate a robust ability to weather economic uncertainties and maintain positive market momentum, reflecting a stable foundation for sustained growth.
NetEase Inc, an Internet technology company specializing in various online services in China, has been rated favorably in terms of Value, indicating a solid investment opportunity. The company’s focus on online entertainment, gaming services, and other Internet technologies positions it well for continued success and profitability in the dynamic digital landscape. With a diverse portfolio that includes email services, web portals, and e-commerce offerings, NetEase Inc is poised to capitalize on evolving consumer preferences and technological advancements.
Summary:
NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company’s core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.
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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