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

KE Holdings Inc. (NYSE:BEKE) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was not a great result overall. Although revenues beat expectations, hitting CN¥93b, statutory earnings missed analyst forecasts by 17%, coming in at just CN¥3.45 per share. 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. 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 KE Holdings

Taking into account the latest results, the consensus forecast from KE Holdings' 19 analysts is for revenues of CN¥104.4b in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 48% to CN¥4.98. In the lead-up to this report, the analysts had been modelling revenues of CN¥102.3b and earnings per share (EPS) of CN¥5.90 in 2025. So it's pretty clear the analysts have mixed opinions on KE Holdings after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

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There's been no major changes to the price target of US$25.87, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on KE Holdings, with the most bullish analyst valuing it at US$32.99 and the most bearish at US$18.49 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting KE Holdings' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that KE Holdings is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at US$25.87, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on KE Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for KE Holdings 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 KE Holdings you should be aware of.

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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.