NEW YORK (TheStreet) -- Shares of NetEase (NTES) were gaining 6.8% to $138.89 on heavy trading volume Thursday after the Chinese game company beat analysts' estimates for earnings and revenue in the first quarter.
NetEase reported earnings of 10.81 yuan a share for the first quarter, above the 8.69 yuan a share analysts surveyed by Thomson Reuters expected. Revenue grew 54% year over year to 3.88 billion yuan for the quarter, beating analysts' estimates of 3.2 billion yuan.
The company, which operates Blizzard's (ATVI) Battle.net service and sells Chinese versions of Blizzard games, said it sold more than 1 million copies of the Chinese version of Diablo III: Reaper of Souls in 10 days in the first quarter.
About 1.7 million shares of NetEase were traded by 10:37 a.m. Thursday, above the company's average trading volume of about 572,000 shares a day.
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, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."