- Tencent‘s third-quarter net income was 63.13 billion yuan, surpassing the estimated 55.88 billion yuan.
- Operating profit reached 63.55 billion yuan, slightly higher than the expected 63.11 billion yuan.
- Adjusted net income stood at 70.55 billion yuan, exceeding the projected 65.97 billion yuan.
- Revenue totaled 192.87 billion yuan, ahead of the anticipated 188.8 billion yuan.
- The Fintech & Business Services segment generated 58.2 billion yuan, in line with the estimate of 58.14 billion yuan.
- The Value-Added Services Business reported 95.9 billion yuan in revenue, beating the forecast of 93.36 billion yuan.
- Domestic games revenue amounted to 42.8 billion yuan, slightly above the estimate of 42.27 billion yuan.
- International games revenue was 20.8 billion yuan, significantly surpassing the expected 18.13 billion yuan.
- Weixin and WeChat’s MAUs reached 1.41 billion, meeting expectations.
- QQ smart device MAUs were 517 million, falling short of the estimated 545.23 million.
- Net other gains were 483 million yuan, above the forecasted 351 million yuan.
- Selling and marketing expenses amounted to 11.47 billion yuan, exceeding the estimate of 10.14 billion yuan.
- Market analysts provided “67 buys,” “3 holds,” and “0 sells” recommendations for Tencent.
Tencent on Smartkarma
Analysts on Smartkarma have varying views on Tencent, a top Chinese tech company.
Gaudenz Schneider, in a bullish sentiment, discusses Tencent‘s earnings volatility and the potential impact on the stock post-earnings. Additionally, a separate report by Schneider delves into the effect of persistent price moves on Tencent, offering insights on risk management strategies. On the contrary, a bearish view from Ke Yan, CFA, FRM, highlights that despite optimistic signs in the gaming industry, Tencent did not receive game approvals in the recent batch. As per the Value Investors Club (VIC), Tencent‘s undervaluation and AI-driven monetization potential are key aspects to consider, positioning the company for growth. The varying analyst sentiments provide investors with a comprehensive view of Tencent‘s market dynamics and potential opportunities.
A look at Tencent Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
When looking at the long-term outlook for Tencent Holdings Limited, the Smartkarma Smart Scores provide valuable insight. With a solid score of 4 in Growth, Resilience, and Momentum, Tencent demonstrates strong potential for future expansion, stability, and market performance. This suggests that Tencent is well-positioned to capitalize on growth opportunities, navigate market challenges, and maintain positive upward momentum in the future. While the Value score is slightly lower at 2, indicating some room for improvement in terms of valuation, the overall outlook remains positive for Tencent.
As an investment holding company offering a wide range of Internet and mobile value-added services, online advertising, and e-commerce transactions, Tencent caters to a global user base. With a respectable Dividend score of 3, Tencent also provides investors with a moderate level of dividend returns. Overall, Tencent‘s strong scores in Growth, Resilience, and Momentum suggest a promising trajectory for long-term success in the 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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