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It's been a pretty great week for KE Holdings Inc. (NYSE:BEKE) shareholders, with its shares surging 11% to US$14.03 in the week since its latest annual results. It was a workmanlike result, with revenues of CN¥78b coming in 2.0% ahead of expectations, and statutory earnings per share of CN¥4.89, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for KE Holdings
After the latest results, the 21 analysts covering KE Holdings are now predicting revenues of CN¥84.5b in 2024. If met, this would reflect a decent 8.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.3% to CN¥4.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥86.5b and earnings per share (EPS) of CN¥5.13 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
It'll come as no surprise then, to learn that the analysts have cut their price target 11% to US$20.85. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values KE Holdings at US$30.31 per share, while the most bearish prices it at US$15.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.6% growth on an annualised basis. That is in line with its 9.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So although KE Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for KE Holdings. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of KE Holdings' future valuation.