EHang Holdings Limited (NASDAQ:EH) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Simply Wall St.
20 Nov 2024

EHang Holdings Limited (NASDAQ:EH) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of CN¥128m were better than expected, some 13% ahead of forecasts. The company still lost a statutory CN¥0.70 per share, although the losses were 18% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for EHang Holdings

NasdaqGM:EH Earnings and Revenue Growth November 20th 2024

Taking into account the latest results, the most recent consensus for EHang Holdings from ten analysts is for revenues of CN¥826.2m in 2025. If met, it would imply a sizeable 137% increase on its revenue over the past 12 months. Before this latest report, the consensus had been expecting revenues of CN¥826.2m and CN¥0.45 per share in losses. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of US$23.86, with EHang Holdings seemingly executing in line with expectations. 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. Currently, the most bullish analyst values EHang Holdings at US$32.95 per share, while the most bearish prices it at US$17.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting EHang Holdings' growth to accelerate, with the forecast 99% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EHang Holdings to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

At least one of EHang Holdings' ten analysts has provided estimates out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for EHang Holdings you should know about.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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