NetEase's Profit Grows

The company beats Wall Street's first-quarter expectations.
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NetEase

(NTES) - Get Report

posted better-than-expected first-quarter results, becoming the latest Chinese Internet company to beat Wall Street expectations.

The Internet and online games services provider said late Tuesday that it had net income of $36.6 million, or 26 cents a share, almost double from the $18.6 million, or 13 cents a share, it earned a year earlier.

On an adjusted basis, NetEase had profit of $39.9 million, or 28 cents, beating the 24-cent-a-share average forecast of analysts surveyed by Thomson First Call. Sales were $66.1 million, up 67% from $39.6 million last year. That beat expectations of $61.7 million.

"By maintaining our focus on our core strengths -- deepening our relationship with our large and loyal customer base and creating quality, innovative online game content -- we believe we will continue to achieve strong growth in 2006,'' said CEO William Ding.

Despite the news, shares of NetEase slipped 35 cents, or 1.5%, in recent after-hours trading to $22.65 on Instinet.

China's soaring Internet demand continues to attract U.S. investors.

Last week,

Baidu

(BIDU) - Get Report

and

Sina

(SINA) - Get Report

beat analysts' forecasts. The week before,

Sohu

(SOHU) - Get Report

surpassed expectations.