Celebrations may be in order for eXp World Holdings, Inc. (NASDAQ:EXPI) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.
Following the upgrade, the current consensus from eXp World Holdings’ three analysts is for revenues of US$2.4b in 2021 which – if met – would reflect a major 67% increase on its sales over the past 12 months. Per-share earnings are expected to surge 108% to US$0.75. Previously, the analysts had been modelling revenues of US$1.8b and earnings per share (EPS) of US$0.47 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
It will come as no surprise to learn that the analysts have increased their price target for eXp World Holdings 61% to US$51.50 on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on eXp World Holdings, with the most bullish analyst valuing it at US$53.00 and the most bearish at US$50.00 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the eXp World Holdings’ past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of eXp World Holdings’historical trends, as next year’s 67% revenue growth is roughly in line with 64% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% next year. So it’s pretty clear that eXp World Holdings is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, eXp World Holdings could be worth investigating further.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple eXp World Holdings analysts – going out to 2022, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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.