Earnings Outlook For KE Holdings

KE Holdings BEKE is set to give its latest quarterly earnings report on Thursday, 2024-11-21. Here's what investors need to know before the announcement.

Analysts estimate that KE Holdings will report an earnings per share (EPS) of $0.21.

KE Holdings bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company beat EPS by $0.10, which was followed by a 0.27% drop in the share price the next day.

Here's a look at KE Holdings's past performance and the resulting price change:

Market Performance of KE Holdings's Stock

Shares of KE Holdings were trading at $20.63 as of November 19. Over the last 52-week period, shares are up 28.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on KE Holdings

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on KE Holdings.

A total of 2 analyst ratings have been received for KE Holdings, with the consensus rating being Buy. The average one-year price target stands at $26.0, suggesting a potential 26.03% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of Zillow Gr, CBRE Group and Compass, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Zillow Gr, with an average 1-year price target of $65.84, indicating a potential 219.15% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for CBRE Group, with an average 1-year price target of $135.0, implying a potential 554.39% upside.
• Compass is maintaining an Neutral status according to analysts, with an average 1-year price target of $7.4, indicating a potential 64.13% downside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Zillow Gr, CBRE Group and Compass, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

KE Holdings is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit. KE Holdings is at the bottom for Return on Equity.

About KE Holdings

KE Holdings, or Beike, is a large residential real estate sales and rental brokerage company in China. Founded in 2001, the company operates through self-owned Lianjia stores in Beijing and Shanghai and connected third-party agencies including franchise brand Deyou in other cities, with commissions charged on existing-home and new-home transactions. Leveraging an online-offline hybrid model, Beike also attract clients through its namesake online marketplace. The company tapped into home renovation services by acquiring Shengdu Home Decoration in 2022. As of the end of 2023, Beike's cofounders collectively control the company, while Tencent and its affiliates share 8% of voting power.

Unraveling the Financial Story of KE Holdings

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: KE Holdings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 19.95%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: KE Holdings's net margin is impressive, surpassing industry averages. With a net margin of 8.1%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): KE Holdings's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.71% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): KE Holdings's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.57% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: KE Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.29, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for KE Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.