Last week, you might have seen that XD Inc. (HKG:2400) released its half-year result to the market. The early response was not positive, with shares down 6.7% to HK$18.66 in the past week. The result was fairly weak overall, with revenues of CN¥2.2b being 8.0% less than what the analysts had been modelling. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for XD
Taking into account the latest results, the consensus forecast from XD's nine analysts is for revenues of CN¥5.10b in 2024. This reflects a huge 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 1,915% to CN¥1.36. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.92b and earnings per share (EPS) of CN¥1.15 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for XD 8.7% to HK$24.22on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on XD, with the most bullish analyst valuing it at HK$35.48 and the most bearish at HK$14.08 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. The analysts are definitely expecting XD's growth to accelerate, with the forecast 75% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that XD is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards XD following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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. At Simply Wall St, we have a full range of analyst estimates for XD going out to 2026, and you can see them free on our platform here..
We also provide an overview of the XD Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.