NetEase.com Second Quarter Earnings Sneak Peek

NetEase.com Inc (ADR) (NASDAQ:NTES) will unveil its latest earnings on Wednesday, August 15, 2012. NetEase.com is a China-based Internet technology company, which is engaged in the development of applications, services, and other technologies for the Internet in China.

NetEase.com Inc (ADR) Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.08 per share, a rise of 18.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.06. Between one and three months ago, the average estimate moved up. It has risen from $1.07 during the last month. Analysts are projecting profit to rise by 17.9% compared to last year’s $4.62.

Past Earnings Performance: Last quarter, the company beat estimates by 12 cents, coming in at net income of $1.14 a share versus the estimate of profit of $1.02 a share. It marked the fourth straight quarter of beating estimates.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the first quarter, profit rose 32.8% to $149.5 million ($1.15 a share) from $112.6 million (88 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 36.3% to $312.1 million from $229.1 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 24.3% in revenue from the year-earlier quarter to $333.5 million.

Stock Price Performance: Between June 13, 2012 and August 9, 2012, the stock price had fallen $5.08 (-8.6%), from $59.26 to $54.18. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 17, 2011, when shares rose for 11 straight days, increasing 25.8% (+$9.37) over that span. It saw one of its worst periods between July 5, 2012 and July 17, 2012 when shares fell for nine straight days, dropping 11.9% (-$7.33) over that span.

Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating NetEase.com a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.21 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.34 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.8% to $391 million while assets rose 5.5% to $2.43 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Investors and Traders: Here are the BIGGEST IMMEDIATE LOSERS of Earnings Season

Is There Too Much Hope for These Stocks in the Housing Rebound?

Is Caterpillar’s Stock a BUY?