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Shares of NetEase Inc. (NASDAQ: NTES) were up 12.1% as of 11:30 a.m. EST Thursday after the Chinese internet technology company announced strong fourth-quarter 2016 results.
Quarterly revenue climbed 53.1% year over year, to 12.099 billion Chineserenminbi (RMB), or roughly $1.7426 billion, which translated to adjusted net income of RMB 4.0 billion, or $569.9 million. Adjusted net income was $4.30 per diluted American depositary share (ADS), up from $2.56 in the same year-ago period. By contrast, analysts' consensus estimates called forfourth-quarter revenue of just $1.58 billion and adjusted earnings of $3.44 per ADS.
According to CEO William Ding:
IMAGE SOURCE: NETEASE.
In the end, these results were far above the heady growth even the most optimistic investors were expecting, so it's unsurprising to see NetEase stock hitting new highs today. If NetEase can sustain this momentum in the coming year, and as Wall Street mulls its relative outperformance, I won't be surprised to see shares continue to rise going forward.
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