Kingsoft Cloud Holdings Limited (NASDAQ:KC) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

One of the biggest stories of last week was how Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares plunged 22% in the week since its latest yearly results, closing yesterday at US$11.04. The results overall were pretty much dead in line with analyst forecasts; revenues were CN¥7.8b and statutory losses were CN¥8.10 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about Kingsoft Cloud Holdings. View them for free.

After the latest results, the eleven analysts covering Kingsoft Cloud Holdings are now predicting revenues of CN¥9.63b in 2025. If met, this would reflect a substantial 24% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 68% to CN¥2.75. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥9.63b and losses of CN¥2.74 per share in 2025.

See our latest analysis for Kingsoft Cloud Holdings

The consensus price target was unchanged at US$17.41, suggesting that the business - losses and all - is executing in line with estimates. 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. The most optimistic Kingsoft Cloud Holdings analyst has a price target of US$25.73 per share, while the most pessimistic values it at US$4.07. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kingsoft Cloud Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Kingsoft Cloud Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kingsoft Cloud Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$17.41, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Kingsoft Cloud Holdings going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Kingsoft Cloud Holdings that 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.