NetEase (Nasdaq: NTES) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NetEase beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.

Gross margins grew, operating margins shrank, net margins expanded.

Revenue details
NetEase booked revenue of $364.5 million. The 10 analysts polled by S&P Capital IQ expected a top line of $350.2 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $333.0 million.

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

EPS details
EPS came in at $1.23. The nine earnings estimates compiled by S&P Capital IQ predicted $1.09 per share. GAAP EPS of $1.23 for Q4 were 15% higher than the prior-year quarter's $1.07 per share.

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

Margin details
For the quarter, gross margin was 70.8%, 160 basis points better than the prior-year quarter. Operating margin was 45.3%, 110 basis points worse than the prior-year quarter. Net margin was 44.4%, 160 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $338.9 million. On the bottom line, the average EPS estimate is $1.17.

Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $4.81.

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 303 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 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 $60.63.

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