Hong Kong Exchanges and Clearing Limited (HKG:388) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Last week saw the newest quarterly earnings release from Hong Kong Exchanges and Clearing Limited (HKG:388), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of HK$5.4b and statutory earnings per share of HK$2.49 both in line with analyst estimates, showing that Hong Kong Exchanges and Clearing is executing in line with expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Hong Kong Exchanges and Clearing

Following the latest results, Hong Kong Exchanges and Clearing's 18 analysts are now forecasting revenues of HK$23.3b in 2025. This would be a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 13% to HK$10.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$23.0b and earnings per share (EPS) of HK$10.44 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$351. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hong Kong Exchanges and Clearing, with the most bullish analyst valuing it at HK$440 and the most bearish at HK$223 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 analysts are definitely expecting Hong Kong Exchanges and Clearing's growth to accelerate, with the forecast 9.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Hong Kong Exchanges and Clearing is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.