Tencent (OTCMKTS:TCEHY) Shares Down 5.4% Following Weak Earnings

Tencent Holding Ltd. (OTCMKTS:TCEHY)’s stock price was down 5.4% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $56.00 and last traded at $56.30. Approximately 2,332,118 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 3,856,038 shares. The stock had previously closed at $59.52.

The technology company reported $1.00 EPS for the quarter, missing the consensus estimate of $1.08 by ($0.08). Tencent had a return on equity of 19.42% and a net margin of 30.60%.

Wall Street Analysts Forecast Growth

Separately, Barclays restated an “overweight” rating and set a $106.00 price target on shares of Tencent in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $106.00.

Tencent Stock Performance

The company has a market capitalization of $511.91 billion, a price-to-earnings ratio of 15.73 and a beta of 0.27. The firm has a fifty day simple moving average of $58.07 and a 200 day simple moving average of $62.65. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.43 and a quick ratio of 1.42.

About Tencent

Tencent Holdings Limited is a Chinese multinational technology conglomerate headquartered in Shenzhen, Guangdong. Founded in 1998, the company grew from early instant-messaging products into a diversified internet services group and is listed on the Hong Kong Stock Exchange. Tencent’s businesses span consumer-facing applications, digital content, cloud services and financial technology, supported by a broad investment program in global technology and gaming companies.

At the consumer level Tencent operates major social and communication platforms such as QQ and WeChat (Weixin), which combine messaging, social networking, mobile payments and a wide range of mini-programs and services.