NetEase Earnings Preview
NetEase (NASDAQ:NTES) will release its quarterly earnings report on Thursday, 2025-11-20. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate NetEase to report an earnings per share (EPS) of $1.88.
The market awaits NetEase's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings History Snapshot
In the previous earnings release, the company beat EPS by $0.22, leading to a 0.35% drop in the share price the following trading session.
Here's a look at NetEase's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.85 | 2.01 | 1.77 | 1.61 |
| EPS Actual | 2.07 | 2.41 | 2.07 | 1.66 |
| Price Change % | 0.00 | -3.00 | 2.00 | 2.00 |
NetEase Share Price Analysis
Shares of NetEase were trading at $139.19 as of November 18. Over the last 52-week period, shares are up 57.03%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on NetEase
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on NetEase.
NetEase has received a total of 1 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $190.0, the consensus suggests a potential 36.5% upside.
Understanding Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Electronic Arts and Take-Two Interactive, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Electronic Arts, with an average 1-year price target of $206.08, suggesting a potential 48.06% upside.
- Analysts currently favor an Buy trajectory for Take-Two Interactive, with an average 1-year price target of $289.5, suggesting a potential 107.99% upside.
Summary of Peers Analysis
The peer analysis summary presents essential metrics for Electronic Arts and Take-Two Interactive, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Roblox | Outperform | 47.96% | $1.06B | -67.20% |
| Electronic Arts | Neutral | -9.19% | $1.40B | 2.27% |
| Take-Two Interactive | Buy | 31.09% | $980.50M | -3.87% |
Key Takeaway:
NetEase ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity.
Unveiling the Story Behind NetEase
Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online game company gaming in China. While its initial success was built upon the massively multiplayer online role-playing game Fantasy Westward Journey, NetEase has expanded its portfolio with captivating franchises that resonate with both domestic and international players. Over the past decade, the company has created titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which maintain significant player bases today. Beyond in-house development, the company also collaborates with likes of Microsoft and Marvel to create and publish games based on renowned IPs, including World of Warcraft, Diablo Immortal, and Marvel Rivals.
NetEase's Financial Performance
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: NetEase displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 9.44%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 30.84%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): NetEase's ROE stands out, surpassing industry averages. With an impressive ROE of 5.86%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): NetEase's ROA stands out, surpassing industry averages. With an impressive ROA of 4.2%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: NetEase's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for NetEase visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.