NetEase (NTES) Stock Soaring as Profit Rises, Revenue Doubles

NetEase (NTES) stock is rising after the company reported a year over year rise in profit and revenue that almost doubled for the 2015 third quarter.
By Amanda Schiavo ,

NEW YORK (TheStreet) --Shares of NetEase (NTES) - Get Report are gaining by 3.58% to $155.45 in mid-day trading on Thursday, after the China-based gaming operator reported a rise in its third quarter 2015 profit and revenue that almost doubled when compared to the same period last year.

The company's profit came in at 1.88 billion yuan, or 14.22 yuan per ADR, and increase from the 1.16 billion yuan, or 8.83 yuan per ADR reported for the 2014 third quarter, the Wall Street Journal reported after the company released its latest financial results after the close yesterday.

Excluding stock-based compensation, NetEase's profit was 15.49 yuan per ADR versus 9.57 yuan for the 2014 third quarter.

Revenue for the period almost doubled to 6.67 billion yuan ($1.05 billion), the Journal added.

NetEase is a Chinese gaming and Internet giant that generates the majority of its revenue from videogames and operates Activision Blizzard's (ATVI) gaming platform battle.net, the Journal said.

The company also operates "World of Warcraft" and other franchises in China.

Separately, TheStreet Ratings team rates NETEASE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate NETEASE INC (NTES) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: NTES

NTES

data by

YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...