| Chinese online game provider NetEase.com (NTES) reported Q3 EPS of 44c, compared with analysts' consensus estimate of 49c. The company's revenue also came in lower than expected. "With an eventful game pipeline as well as new service introductions in email, blog and search, we are confident in maintaining our market-leading position in the Chinese (multiplayer role-playing game) market and accelerating our position as a portal of choice for the dynamic and growing user community across China," NetEase CEO William Ding said. Two research firms had very different outlooks on NetEase.com after the company reported its results. A Roth Capital analyst lowered his target on NetEase.com to $40 from $48, due to the earnings miss and the firm's belief that the company now faces greater uncertainty. The firm may be referring to the uncertainty of NetEase's World of Warcraft game in China. The company has said that the game is being operated in China without the approval of General Administration of Press and Publication, a government regulator. Roth maintains a Hold rating on NetEase. Conversely, a Pali analyst does not believe that the company's results indicate that the company's business sis struggling. The firm thinks that the Street's revenue estimates for world of Warcraft were too high, while EPS estimates did not model high enough costs for the game. The firm thinks that Netease actually performed well in Q3 and it maintains a Buy rating and $45 target. In mid-morning trading, NetEase.com fell $3.31, or 8.13%, to $37.38. :theflyonthewall.com |
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