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Investors in Kanzhun Limited (NASDAQ:BZ) had a good week, as its shares rose 8.8% to close at US$18.86 following the release of its full-year results. Kanzhun reported in line with analyst predictions, delivering revenues of CN¥7.4b and statutory earnings per share of CN¥3.49, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Kanzhun
Taking into account the latest results, the current consensus from Kanzhun's 18 analysts is for revenues of CN¥8.30b in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 33% to CN¥4.84. Before this earnings report, the analysts had been forecasting revenues of CN¥8.29b and earnings per share (EPS) of CN¥4.79 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 17% to US$20.12. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kanzhun, with the most bullish analyst valuing it at US$22.66 and the most bearish at US$13.97 per share. This is a very narrow spread of estimates, implying either that Kanzhun is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Kanzhun's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Compare this to the 127 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it looks like Kanzhun is forecast to grow at about the same rate as the wider industry.