Will NetEase Beat These Analyst Estimates?

Seth Jayson, The Motley Fool
Updated

NetEase (NAS: NTES) is expected to report Q4 earnings on Feb. 6. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NetEase's revenues will increase 2.6% and EPS will shrink 0.0%.

The average estimate for revenue is $350.2 million. On the bottom line, the average EPS estimate is $1.09.


Revenue details
 Last quarter, NetEase tallied revenue of $325.4 million. GAAP reported sales were 3.8% higher than the prior-year quarter's $306.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.99. GAAP EPS of $0.98 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 68.0%, 20 basis points better than the prior-year quarter. Operating margin was 41.2%, 580 basis points worse than the prior-year quarter. Net margin was 40.6%, 160 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.31 billion. The average EPS estimate is $4.33.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,119 members out of 1,158 rating the stock outperform, and 39 members rating it underperform. Among 307 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 299 give NetEase a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NetEase is outperform, with an average price target of $63.94.

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The article Will NetEase Beat These Analyst Estimates? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends NetEase.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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