Kanzhun Limited (NASDAQ:BZ) Just Released Its Full-Year Earnings: Here's What Analysts Think

Kanzhun Limited (NASDAQ:BZ) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to US$26.20 in the week after its latest annual results. Revenues of CN¥4.3b arrived in line with expectations, although statutory losses per share were CN¥4.67, an impressive 38% smaller than what broker models predicted. 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.

View our latest analysis for Kanzhun

Taking into account the latest results, the consensus forecast from Kanzhun's eight analysts is for revenues of CN¥6.55b in 2022, which would reflect a major 54% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Kanzhun forecast to report a statutory profit of CN¥2.09 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥6.71b and earnings per share (EPS) of CN¥2.22 in 2022. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of US$37.91, suggesting the downgrades are not expected to have a long-term impact on Kanzhun's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kanzhun at US$42.03 per share, while the most bearish prices it at US$34.72. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Kanzhun's revenue growth is expected to slow, with the forecast 54% annualised growth rate until the end of 2022 being well below the historical 119% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. So it's pretty clear that, while Kanzhun's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kanzhun. They also downgraded their revenue estimates, although industry data suggests that Kanzhun's revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$37.91, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Kanzhun analysts - going out to 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Kanzhun 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.