As you might know, XD Inc. (HKG:2400) recently reported its interim numbers. It was a mildly positive result, with revenues exceeding expectations at CN¥3.1b, while statutory earnings per share (EPS) of CN¥1.69 were in line with analyst forecasts. 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.
Following the latest results, XD's twelve analysts are now forecasting revenues of CN¥6.54b in 2025. This would be a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 16% to CN¥3.26. Before this earnings report, the analysts had been forecasting revenues of CN¥5.82b and earnings per share (EPS) of CN¥2.35 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
Check out our latest analysis for XD
It will come as no surprise to learn that the analysts have increased their price target for XD 14% to HK$65.62on the back of these upgrades. 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 XD, with the most bullish analyst valuing it at HK$93.64 and the most bearish at HK$35.21 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that XD's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that XD is expected to grow much faster than its 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 XD following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for XD going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for XD you should be aware of.
Valuation is complex, but we're here to simplify it.
Discover if XD might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.