Is it time to Buy before this week’s earning report NetEase (NASDAQ:NTES)

Earnings results for NetEase (NASDAQ:NTES)

NetEase, Inc. is expected* to report earnings on 08/31/2021 before market open. The report will be for the fiscal Quarter ending Jun 2021. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.78. The reported EPS for the same quarter last year was $0.98.

NetEase last issued its earnings results on May 18th, 2021. The technology company reported $7.47 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $6.69. The firm earned $20.52 billion during the quarter, compared to the consensus estimate of $20.10 billion. Its revenue for the quarter was up 20.2% on a year-over-year basis. NetEase has generated $2.76 earnings per share over the last year ($2.84 diluted earnings per share) and currently has a price-to-earnings ratio of 29.5. Earnings for NetEase are expected to grow by 25.14% in the coming year, from $3.62 to $4.53 per share. NetEase has confirmed that its next quarterly earnings report will be published on Tuesday, August 31st, 2021. NetEase will be holding an earnings conference call on Tuesday, August 31st at 8:00 AM Eastern. Interested parties can register for or listen to the call using this link or dial in at 719-457-0820 with passcode “7055363 #”.

Analyst Opinion on NetEase (NASDAQ:NTES)

7 Wall Street analysts have issued ratings and price targets for NetEase in the last 12 months. Their average twelve-month price target is $130.83, predicting that the stock has a possible upside of 56.20%. The high price target for NTES is $155.00 and the low price target for NTES is $107.00. There are currently 1 hold rating and 6 buy ratings for the stock, resulting in a consensus rating of “Buy.”

NetEase has received a consensus rating of Buy. The company’s average rating score is 2.86, and is based on 6 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $130.83, NetEase has a forecasted upside of 56.2% from its current price of $83.76. NetEase has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: NetEase (NASDAQ:NTES)

NetEase pays a meaningful dividend of 1.42%, higher than the bottom 25% of all stocks that pay dividends. NetEase has only been increasing its dividend for 1 years. The dividend payout ratio of NetEase is 43.12%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, NetEase will have a dividend payout ratio of 26.27% next year. This indicates that NetEase will be able to sustain or increase its dividend.

Insiders buying/selling: NetEase (NASDAQ:NTES)

In the past three months, NetEase insiders have not sold or bought any company stock. 54.70% of the stock of NetEase is held by insiders. A high percentage of insider ownership can be a sign of company health. Only 32.51% of the stock of NetEase is held by institutions.

Earnings and Valuation of NetEase (NASDAQ:NTES

Earnings for NetEase are expected to grow by 25.14% in the coming year, from $3.62 to $4.53 per share. The P/E ratio of NetEase is 29.51, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.80. The P/E ratio of NetEase is 29.51, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 51.04. NetEase has a PEG Ratio of 1.10. PEG Ratios above 1 indicate that a company could be overvalued. NetEase has a P/B Ratio of 4.41. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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