Analyst Estimates: Here's What Brokers Think Of iQIYI, Inc. (NASDAQ:IQ) After Its Full-Year Report

Investors in iQIYI, Inc. (NASDAQ:IQ) had a good week, as its shares rose 2.2% to close at US$3.69 following the release of its full-year results. Revenues of CN¥32b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥1.98, missing estimates by 2.5%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on iQIYI after the latest results.

View our latest analysis for iQIYI

After the latest results, the 22 analysts covering iQIYI are now predicting revenues of CN¥33.9b in 2024. If met, this would reflect a reasonable 6.5% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥33.7b and earnings per share (EPS) of CN¥2.76 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of US$6.06, with iQIYI seemingly executing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic iQIYI analyst has a price target of US$10.01 per share, while the most pessimistic values it at US$3.57. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that iQIYI's rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.8% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, iQIYI is expected to grow slower than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that iQIYI's revenue is expected to perform worse 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.

We have estimates for iQIYI from its 22 analysts out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with iQIYI , and understanding it should be part of your investment process.

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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.