NTES to Release Earnings on August 8, MarketChameleon earnings price pattern has detected two notable historical trends.


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NTES to Release Earnings on August 8

Netease Inc. - ADR (NTES) is scheduled to release earnings on August 8, 2018, after the market closes, and will hold a conference call at 9:00 PM ET on the same day. The stock currently trades at 258.13, which is 4.9% higher than the close following its last reported earnings, trading with a range of 222.32 to 270.64 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 5.8% move for this earnings, and during the previous earnings release, the stock experienced a -7.5% move. Over the last 12 quarters, the absolute average move has been ± 6.7%, with a minimum move of 0.4% and a maximum move of 14.8%. NTES has experienced 6 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected two notable historical trends.
2 Weeks Before Earnings:For 9 of the last 12 quarters (75%), NTES stock price has gone up in the 2 weeks before earnings. It has had an average gain of +4.2% during that span.
Earnings Day Drift:For 10 of the last 12 quarters (83%), the stock price has drifted down after the open, on average closing -2.2% lower over that time.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling at-the-money calls the day before earnings had 83% winning occurrences, for an average gain of +14.0%. Additionally, selling at-the-money straddles resulted in 50% winning occurrences -- however, the average return was a loss of -27.1%.

EPS Estimate

Analysts are currently expecting NTES to report an earnings of $2.30 per share, compared to $3.86 for the same quarter last year. Revenue is expected to come in at $2.4 billion versus $2.0 billion for the previous year.

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