NetEase Third Quarter 2022 Earnings: EPS Beats Expectations

NetEase (NASDAQ:NTES) Third Quarter 2022 Results

Key Financial Results

• Revenue: CN¥24.4b (up 10% from 3Q 2021).

• Net income: CN¥6.70b (up 111% from 3Q 2021).

• Profit margin: 27% (up from 14% in 3Q 2021). The increase in margin was primarily driven by higher revenue.

• EPS: CN¥10.27 (up from CN¥4.78 in 3Q 2021).

All figures shown in the chart above are for the trailing 12 month (TTM) period

NetEase EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 56%.

Looking ahead, revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Entertainment industry in the US.

Performance of the American Entertainment industry.

The company's shares are up 4.1% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for NetEase that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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