Beijing Kingsoft Office Software, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for Beijing Kingsoft Office Software, Inc. (SHSE:688111) shares in the week since its annual report, with the stock down 12% to CN¥309. Beijing Kingsoft Office Software reported CN¥5.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥3.56 beat expectations, being 8.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Beijing Kingsoft Office Software from 25 analysts is for revenues of CN¥6.34b in 2025. If met, it would imply a huge 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to CN¥4.18. Before this earnings report, the analysts had been forecasting revenues of CN¥6.38b and earnings per share (EPS) of CN¥4.13 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.

View our latest analysis for Beijing Kingsoft Office Software

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥347. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Beijing Kingsoft Office Software at CN¥491 per share, while the most bearish prices it at CN¥130. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Kingsoft Office Software's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Beijing Kingsoft Office Software'shistorical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Beijing Kingsoft Office Software is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Beijing Kingsoft Office Software analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Beijing Kingsoft Office Software has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.