Chinese Game Publisher NetEase Easily Beats First-Quarter Targets Chinese video game publisher NetEase (NTES) late Tuesday easily beat Wall Street's targets for the first quarter. The NetEase earnings report drove NTES stock higher in extended trading.To get more NetEase news, you can visit shine news official website.
The Hangzhou, China-based company earned an adjusted $4.60 per American depositary share on revenue of $2.4 billion in the March quarter. Analysts were modeling NetEase earnings of $4.01 per U.S. share on sales of $2.21 billion. In the year-earlier period, NetEase earnings were an adjusted $3.48 per U.S. share on sales of $2.735 billion. Online game services accounted for 79% of NetEase revenue in the first quarter. NetEase develops and operates popular PC and mobile games in China such as "Fantasy Westward Journey" and "Onmyoji.
" It also distributes games in China for Activision Blizzard (ATVI), Microsoft's (MSFT) Mojang and others. In addition to games, NetEase offers online education, music streaming and other internet services.NetEase had a good quarter despite the unfolding Covid-19 coronavirus pandemic, Chief Executive William Ding said in the NetEase earnings news release. "As with companies around the globe, we encountered an unexpected global health crisis and a great deal of uncertainty as 2020 has unfolded," Ding said. "The situation presents numerous evolving challenges, but our resolve to overcome any hurdles remains undiminished."In after-hours trading on the stock market today, NTES stock 3.1%, near 408. It ended the regular session up 3.6% to 395.69, ahead of the NetEase earnings report.
Earlier in the session, NTES stock notched an all-time high of 399.83. On April 16, NTES stock hit a buy point of 361.10 out of an eight-week consolidation period. But the stock soon reversed and triggered a stop-loss sell rule under IBD trading principles. Then, early this month, NTES stock bounced off its 50-day moving average line and returned to the buy zone of its earlier breakout. NetEase stock is tied for third place out of 14 stocks in IBD's Computer Software-Gaming industry group, according to the IBD Stock Checkup tool. It has an IBD Composite Rating of 95, the same as peer Electronic Arts (EA). SciPlay (SCPL) ranks first in the group, followed by recent IPO GAN (GAN).