Hong Kong Exchanges and Clearing Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Hong Kong Exchanges and Clearing Limited (HKG:388) just kicked off its latest second-quarter results with some very strong numbers. The company beat expectations with revenues of HK$7.2b arriving 5.4% ahead of forecasts. Statutory earnings per share (EPS) were HK$3.50, 7.5% ahead of estimates. 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.

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Taking into account the latest results, the current consensus from Hong Kong Exchanges and Clearing's 18 analysts is for revenues of HK$27.4b in 2025. This would reflect a modest 7.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.5% to HK$12.89. Before this earnings report, the analysts had been forecasting revenues of HK$27.3b and earnings per share (EPS) of HK$12.02 in 2025. So the consensus seems to have become somewhat more optimistic on Hong Kong Exchanges and Clearing's earnings potential following these results.

Check out our latest analysis for Hong Kong Exchanges and Clearing

There's been no major changes to the consensus price target of HK$488, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Hong Kong Exchanges and Clearing, with the most bullish analyst valuing it at HK$542 and the most bearish at HK$340 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hong Kong Exchanges and Clearing's past performance and to peers in the same industry. It's clear from the latest estimates that Hong Kong Exchanges and Clearing's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hong Kong Exchanges and Clearing to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hong Kong Exchanges and Clearing following these results. 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 forecasts for Hong Kong Exchanges and Clearing going out to 2027, and you can see them free on our platform here.

Even so, be aware that Hong Kong Exchanges and Clearing is showing 1 warning sign in our investment analysis , you should know about...

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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.