Chinese video game publisher and internet services firm NetEase on Thursday beat estimates for earnings in the fourth quarter but its sales were light. NetEase stock fell on the news.
NetEase earned an adjusted $2.07 per U.S. share on sales of $3.66 billion in the December quarter. Analysts polled by FactSet had expected earnings of $1.72 a share on sales of $3.72 billion. On a year-over-year basis, NetEase earnings rose 31% while sales decreased 2.9%.
Video games accounted for 79% of NetEase revenue in the fourth quarter. In addition to online and mobile games, NetEase offers a search engine, streaming music and other internet services.
"As our diverse game portfolio expands across more genres and engages an ever-growing global audience, we remain dedicated to fostering creativity and collaborating with top talent and strategic partners to shape the next wave of gaming trends," Chief Executive William Ding said in a news release.
NetEase games include new titles "Marvel Rivals" and "Where Winds Meet" plus established franchises like "Westward Journey Online 2," "Fantasy Westward Journey Online" and "Onmyoji."
On the stock market today, NetEase stock fell 2.6% to close at 101.42.
NetEase stock ranks first out of 23 stocks in IBD's Computer Software-Gaming industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 83 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
