NetEase (Nasdaq: NTES ) is expected to report Q3 earnings on Nov. 14. 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 8.5% and EPS will expand 10.1%.
The average estimate for revenue is $333.0 million. On the bottom line, the average EPS estimate is $1.09.
Last quarter, NetEase booked revenue of $308.9 million. GAAP reported sales were 15% higher than the prior-year quarter's $268.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $1.05. GAAP EPS of $1.05 for Q2 were 15% higher than the prior-year quarter's $0.91 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 67.3%, 80 basis points better than the prior-year quarter. Operating margin was 45.0%, 40 basis points worse than the prior-year quarter. Net margin was 44.6%, about the same as the prior-year quarter.
The full year's average estimate for revenue is $1.33 billion. The average EPS estimate is $4.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,111 members out of 1,152 rating the stock outperform, and 41 members rating it underperform. Among 296 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 284 give NetEase a green thumbs-up, and 12 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 $65.14.
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