NetEase (NASDAQ:NTES) Posts Quarterly Earnings Results, Beats Estimates By $2.43 EPS

NetEase (NASDAQ:NTES) released its quarterly earnings data on Thursday. The technology company reported $13.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.87 by $2.43, MarketWatch Earnings reports. NetEase had a return on equity of 23.33% and a net margin of 26.21%. The company had revenue of $27.27 billion during the quarter, compared to the consensus estimate of $27.26 billion. During the same quarter in the prior year, the firm posted $1.43 earnings per share. The firm’s revenue was up 13.6% compared to the same quarter last year.

NetEase Price Performance

NetEase stock opened at $117.14 on Friday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.91 and a current ratio of 2.93. NetEase has a 52-week low of $63.25 and a 52-week high of $117.77. The stock’s 50 day moving average price is $105.17 and its two-hundred day moving average price is $100.16. The stock has a market capitalization of $75.52 billion, a price-to-earnings ratio of 20.23, a PEG ratio of 1.12 and a beta of 0.56.

NetEase Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 15th. Shareholders of record on Friday, December 1st will be issued a dividend of $0.495 per share. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date of this dividend is Thursday, November 30th. NetEase’s payout ratio is 36.10%.

Hedge Funds Weigh In On NetEase

A number of institutional investors have recently modified their holdings of NTES. Global Retirement Partners LLC raised its position in shares of NetEase by 186.6% during the second quarter. Global Retirement Partners LLC now owns 321 shares of the technology company’s stock worth $31,000 after purchasing an additional 209 shares during the period. CWM LLC raised its position in shares of NetEase by 59.9% during the second quarter. CWM LLC now owns 331 shares of the technology company’s stock worth $32,000 after purchasing an additional 124 shares during the period. Pinpoint Asset Management Ltd acquired a new position in shares of NetEase during the first quarter worth approximately $42,000. First Capital Advisors Group LLC. acquired a new position in shares of NetEase during the second quarter worth approximately $47,000. Finally, Huntington National Bank raised its position in shares of NetEase by 27.4% during the second quarter. Huntington National Bank now owns 516 shares of the technology company’s stock worth $50,000 after purchasing an additional 111 shares during the period. 11.78% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently commented on NTES. StockNews.com cut NetEase from a “strong-buy” rating to a “buy” rating in a report on Tuesday, November 14th. Citigroup reduced their target price on NetEase from $134.00 to $132.00 and set a “buy” rating on the stock in a report on Friday, August 25th. Benchmark upped their target price on NetEase from $130.00 to $140.00 and gave the company a “buy” rating in a report on Friday. Bank of America upped their target price on NetEase from $128.00 to $135.00 and gave the company a “buy” rating in a report on Friday, August 25th. Finally, JPMorgan Chase & Co. upped their target price on NetEase from $120.00 to $125.00 and gave the company an “overweight” rating in a report on Tuesday, August 29th. Six research analysts have rated the stock with a buy rating, According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $126.00.

About NetEase

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.