What to Expect From NetEase’s Q3 Results?

Analysts at Nomura provided their outlook on upcoming NetEase's (NASDAQ:NTES) Q3 results, expecting a solid quarter, that will likely be a rare bright spot in an otherwise dull Q3 earnings season for the China internet space, that will likely be marked by sluggish growth and a cautious tone towards outlook.

According to the brokerage, the two new titles the company launched in July (Naraka Bladepoint) and September (Harry Potter) have both materially surpassed market expectations. The analysts believe the popularity of both the titles will be able to sustain, backed by the launch of a mobile and console version for Naraka Bladepoint and entry into the Japan market for Harry Potter early next year.

The brokerage anticipates 20%/38% year-over-year growth in the company’s Q3 consolidated revenue/non-GAAP operating profit which is 6%/8% above the consensus estimates.