eXp World Holdings, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that eXp World Holdings, Inc. (NASDAQ:EXPI) released its annual result to the market. The early response was not positive, with shares down 7.7% to US$10.90 in the past week. Things were not great overall, with a surprise (statutory) loss of US$0.06 per share on revenues of US$4.3b, even though the analysts had been expecting a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for eXp World Holdings

After the latest results, the three analysts covering eXp World Holdings are now predicting revenues of US$4.71b in 2024. If met, this would reflect a solid 10.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with eXp World Holdings forecast to report a statutory profit of US$0.18 per share. Before this earnings report, the analysts had been forecasting revenues of US$4.75b and earnings per share (EPS) of US$0.17 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$15.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values eXp World Holdings at US$20.00 per share, while the most bearish prices it at US$10.00. 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. It's pretty clear that there is an expectation that eXp World Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 10.0% growth on an annualised basis. This is compared to a historical growth rate of 37% over the past five years. Compare this to the 115 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.9% per year. Factoring in the forecast slowdown in growth, it looks like eXp World Holdings is forecast to grow at about the same rate as the wider 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 eXp World Holdings following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on eXp World Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for eXp World Holdings going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with eXp World Holdings .

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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.