Kanzhun Limited Just Recorded A 45% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Kanzhun Limited (NASDAQ:BZ) filed its quarterly result this time last week. The early response was not positive, with shares down 4.6% to US$17.41 in the past week. It looks like a credible result overall - although revenues of CN¥1.9b were what the analysts expected, Kanzhun surprised by delivering a (statutory) profit of CN¥1.16 per share, an impressive 45% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kanzhun after the latest results.

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Taking into account the latest results, the consensus forecast from Kanzhun's 20 analysts is for revenues of CN¥8.22b in 2025. This reflects a decent 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 23% to CN¥5.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥8.29b and earnings per share (EPS) of CN¥5.00 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Kanzhun

The consensus price target was unchanged at US$21.16, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Kanzhun at US$28.40 per share, while the most bearish prices it at US$14.05. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Kanzhun's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past three years. Compare this to the 122 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Kanzhun's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kanzhun's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$21.16, with the latest estimates not enough to have an impact on their price targets.

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 Kanzhun going out to 2027, 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.