Grab Holdings Limited Just Reported A Surprise Profit, And Analysts Lifted Their Estimates

It's been a pretty great week for Grab Holdings Limited (NASDAQ:GRAB) shareholders, with its shares surging 16% to US$4.89 in the week since its latest quarterly results. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$716m. Grab Holdings also reported a statutory profit of US$0.01, which was a nice improvement from the loss that the analysts were predicting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Grab Holdings

Taking into account the latest results, the most recent consensus for Grab Holdings from 22 analysts is for revenues of US$3.33b in 2025. If met, it would imply a sizeable 24% increase on its revenue over the past 12 months. Grab Holdings is also expected to turn profitable, with statutory earnings of US$0.038 per share. Before this earnings report, the analysts had been forecasting revenues of US$3.22b and earnings per share (EPS) of US$0.027 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Grab Holdings 12% to US$5.30on the back of these upgrades. 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. There are some variant perceptions on Grab Holdings, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$4.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Grab Holdings' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 49% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.7% annually. Even after the forecast slowdown in growth, it seems obvious that Grab Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Grab Holdings' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. We have forecasts for Grab Holdings going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Grab 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.