NetEase Declares $0.675 Dividend, Q2 Earnings Miss Estimates Despite Analysts' Optimism

NetEase (NTES) announced a quarterly dividend of $0.675 per share, despite missing Q2 earnings expectations. Analysts predict a potential stock price rise with a significant upside, while GuruFocus warns of a possible downside based on GF Value estimates. The average target price for NTES is set at $148.35, with a consensus recommendation of "Outperform" from 30 brokerage firms.

NetEase Inc. (NTES), a leading Chinese internet company, has announced a quarterly dividend of $0.675 per share, scheduled for payment on September 11, to shareholders recorded by August 28. The dividend provides a stable income for investors, but the company's Q2 results highlighted some challenges. NetEase recorded earnings per share of $2.09, which came in slightly below expectations, and generated $3.9 billion in revenue, missing estimates by $80 million [1].

Despite the earnings miss, market analysts are offering a positive outlook for NetEase. Based on the projections from 28 analysts, the average target price for NetEase Inc (NTES) is set at $148.35, with a range from a high of $174.94 to a low of $110.96, indicating an upside of 14.80% from the current stock price of $129.22 [1]. Furthermore, consensus from 30 brokerage firms places NetEase Inc’s average recommendation at 1.8, indicative of an "Outperform" status [1].

According to GuruFocus metrics, the estimated GF Value for NetEase Inc (NTES) over the next year is calculated to be $109.03, suggesting a potential downside of 15.62% from the current stock price of $129.22 [1]. GF Value provides an estimate of the fair trading price for the stock, derived from historical multiples, past business growth, and future performance projections.

Analysts have highlighted the company's strategic diversification and long-term growth potential. While the earnings miss in Q2 2025 was disappointing, the overall market sentiment remains positive due to the company's strong gaming portfolio and potential for future growth [2]. NetEase's gaming division continues to be a strong performer, contributing significantly to the company's revenue, despite the overall revenue miss [2].

Investors are advised to closely monitor NetEase's non-gaming segments and the execution of its strategic initiatives. The company's gaming dominance and strong cash position provide a solid foundation for long-term growth. However, the market's overreaction to short-term volatility may have created an attractive entry point for those willing to bet on NetEase's innovation pipeline [2].

References:
[1] https://www.gurufocus.com/news/3065864/netease-ntes-announces-0675-dividend-q2-earnings-miss-estimates
[2] https://www.ainvest.com/news/netease-earnings-revenue-falls-short-expectations-2508/