Yahoo Finance NetEase Full Year 2023 Earnings: Misses Expectations
NetEase (NASDAQ:NTES) Full Year 2023 Results
Key Financial Results
Revenue: CN¥103.5b (up 7.2% from FY 2022).
Net income: CN¥29.4b (up 49% from FY 2022).
Profit margin: 28% (up from 20% in FY 2022). The increase in margin was primarily driven by higher revenue.
EPS: CN¥45.73 (up from CN¥30.20 in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
NetEase Revenues and Earnings Miss Expectations
Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 2.8%.
The primary driver behind last 12 months revenue was the Games and Related Value-Added Services segment contributing a total revenue of CN¥81.6b (79% of total revenue). The largest operating expense was Research & Development (R&D) costs, amounting to CN¥16.5b (47% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥1.71b. Explore how NTES's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Entertainment industry in the US.
Performance of the American Entertainment industry.
The company's shares are up 2.7% from a week ago.
Valuation
Following the latest earnings results, NetEase may be undervalued based on 6 different valuation benchmarks we assess. Click here to view our comprehensive analysis and gain insights into the stock's investment prospects.
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