China-based Tencent Holdings (TCEHY) reported fourth-quarter results before the market open Wednesday that met earnings estimates and beat on revenue, helped in part by a surge in revenue from its online gaming business. Tencent stock fell.
XThe company reported adjusted earnings of 52 cents a share on revenue of $20.5 billion. Analysts expected Tencent to report adjusted earnings of 52 cents a share on revenue of $20.3 billion, according to FactSet.
Revenue jumped 26% from the year-ago period. Online games revenue surged 29% to $6 billion. Revenue from its FinTech and Business Services unit also climbed 29%, to $5.9 billion.
Tencent stock fell 1.6%, near 79.50, during morning action on the stock market today.
Fueled by its popular WeChat app, Tencent is China's leader in online messaging and payment services. It's also a leading provider of online gaming, and has a burgeoning business in cloud computing.
Also, Tencent ended the quarter with 1.2 billion users of its WeChat communications app, up 5%.
Tencent Stock Below Record High
"While 2020 was an unprecedentedly challenging year, we believe our solid operational and financial results testify to our focus on user value and technology innovation," the company said in the Tencent earnings release.
Tencent stock is down 11% from its record high of 99.40 set on Feb. 12.
Tencent Music Entertainment (TME), a spinoff of Tencent Holdings, announced its fourth-quarter results Monday morning that met analyst estimates.
Tencent is one of the largest internet companies in China, along with Alibaba (BABA) and JD.com (JD).
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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