NetEase.com (NTES) Earnings Miss Tied to Weakness in World of Warcraft

Deutsche Bank maintained a Hold rating on NetEase.com (NASDAQ: NTES) and cut its price target to $51.00 (from $56.00). Netease recently reported Q3 results that were, in the view of Deutsche Bank, lackluster. The earnings miss was tied to weak performance from World of Warcraft (WoW).

“Lackluster 3Q results indicate that growth from all in-house developed games is just sufficient to offset continued weakness in WoW. Nevertheless, we expect the situation to gradually improve over the next 12 months, as WoW recovers its usage,” said analyst Alex Yao.

Yoa expects margins to deteriorate as gaming revenue growth stalls, though a pickup in Q1 is expected.

For an analyst ratings summary and ratings history on NetEase.com click here. For more ratings news on NetEase.com click here.

Shares of NetEase.com closed at $50.30 yesterday.

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