It’s been a good week for eXp World Holdings, Inc. (NASDAQ:EXPI) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to US$9.42. Revenues were in line with expectations, at US$282m, while losses ballooned to US$0.03 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what top 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 forecasts to see whether analysts have changed their earnings models, following these results.
Following the latest results, eXp World Holdings’s three analysts are now forecasting revenues of US$1.3b in 2020. This would be a substantial 54% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.05 per share. Before this earnings announcement, analysts had been forecasting revenues of US$1.3b and losses of US$0.033 per share in 2020. Analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
As a result, there was no major change to the consensus price target of US$18.00, with analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target just an average of individual analyst targets, so – considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic eXp World Holdings analyst has a price target of US$19.00 per share, while the most pessimistic values it at US$17.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that eXp World Holdings’s revenue growth is expected to slow, with forecast 54% increase next year well below the historical 71%p.a. growth over the last five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% next year. So it’s pretty clear that, while eXp World Holdings’s revenue growth is expected to slow, it’s still expected to grow faster than the market itself.
The Bottom Line
The most important thing to take away is that analysts reconfirmed their loss per share estimates for next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations – and our data does suggest that eXp World Holdings’s revenues are expected to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for eXp World Holdings going out to 2021, and you can see them free on our platform here..
We also provide an overview of the eXp World Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.