The Kingsoft Cloud Holdings Limited (NASDAQ:KC) Full-Year Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that Kingsoft Cloud Holdings Limited (NASDAQ:KC) released its yearly result to the market. The early response was not positive, with shares down 7.1% to US$48.74 in the past week. Revenues were in line with expectations, at CN¥6.6b, while statutory losses ballooned to CN¥6.15 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Kingsoft Cloud Holdings

Taking into account the latest results, the consensus forecast from Kingsoft Cloud Holdings' eleven analysts is for revenues of CN¥10.4b in 2021, which would reflect a substantial 58% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 39% to CN¥3.76. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥10.6b and losses of CN¥3.65 per share in 2021. So it's pretty clear consensus is mixed on Kingsoft Cloud Holdings after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

As a result, there was no major change to the consensus price target of CN¥376, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kingsoft Cloud Holdings analyst has a price target of CN¥69.98 per share, while the most pessimistic values it at CN¥16.02. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Kingsoft Cloud Holdings' growth to accelerate, with the forecast 58% annualised growth to the end of 2021 ranking favourably alongside historical growth of 43% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% 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 increased 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kingsoft Cloud Holdings going out to 2025, and you can see them free on our platform here..

Even so, be aware that Kingsoft Cloud Holdings is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. 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.
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