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What Does The Future Hold For eXp World Holdings, Inc. (NASDAQ:EXPI)? These Analysts Have Been Cutting Their Estimates

Simply Wall St
·3 mins read

One thing we could say about the analysts on eXp World Holdings, Inc. (NASDAQ:EXPI) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from eXp World Holdings' three analysts is for revenues of US$1.2b in 2020 which - if met - would reflect a decent 13% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.095 per share this year. Previously, the analysts had been modelling revenues of US$1.4b and earnings per share (EPS) of US$0.10 in 2020. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

View our latest analysis for eXp World Holdings

NasdaqGM:EXPI Past and Future Earnings May 14th 2020
NasdaqGM:EXPI Past and Future Earnings May 14th 2020

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 would highlight that eXp World Holdings' revenue growth is expected to slow, with forecast 13% increase next year well below the historical 68% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% next year. Even after the forecast slowdown in growth, it seems obvious that eXp World Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on eXp World Holdings after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for eXp World Holdings 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.