KE Holdings Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for KE Holdings Inc. (NYSE:BEKE) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.2% to US$16.68. Revenues were CN¥23b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CN¥0.65, an impressive 20% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on KE Holdings after the latest results.

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Following last week's earnings report, KE Holdings' 25 analysts are forecasting 2026 revenues to be CN¥103.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 62% to CN¥4.84. In the lead-up to this report, the analysts had been modelling revenues of CN¥113.7b and earnings per share (EPS) of CN¥6.04 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Check out our latest analysis for KE Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 9.7% to US$20.64. 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 KE Holdings analyst has a price target of US$26.55 per share, while the most pessimistic values it at US$15.01. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KE Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that KE Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.09% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than KE Holdings.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of KE Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple KE Holdings analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with KE 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.