NetEase, one of China's leading online games and internet services providers, on Thursday beat expectations for earnings in the second quarter but its sales disappointed. NTES stock fell on the news.
The Hangzhou, China-based company earned an adjusted $1.93 per U.S. share on sales of $3.3 billion in the June quarter. Analysts polled by FactSet had expected NetEase earnings of $1.25 a share on sales of $3.41 billion. In the year-earlier period, NetEase earned an adjusted $1.20 per U.S. share on sales of $3.41 billion.
Video games accounted for 78% of NetEase revenue in the second quarter. In addition to online and mobile games, NetEase offers a search engine, streaming music and other internet services.
"Our steady second-quarter results reflect our dedication to producing exceptional content across our businesses," Chief Executive William Ding said in a news release.
NTES Stock Is A Tech Leader
On the stock market today, NTES stock sank 4% to close at 98.59.
On June 13, NTES stock broke out of a flat base at a buy point of 94.99, according to IBD MarketSmith charts.
NTES stock is on the IBD Tech Leaders list. However, NetEase ranks fifth out of 23 stocks in IBD's Computer Software-Gaming industry group, according to IBD Stock Checkup.
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