EHang Holdings Limited (NASDAQ:EH) just released its latest third-quarter results and things are looking bullish. The results overall were credible, with revenues of CN¥128m beating expectations by 13%. Statutory losses were CN¥0.70 per share, 18% below what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the ten analysts covering EHang Holdings are now predicting revenues of CN¥826.2m in 2025. If met, this would reflect a huge 137% improvement in revenue compared to the last 12 months. Before this earnings announcement, the analysts had been modelling revenues of CN¥826.2m and losses of CN¥0.45 per share in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
We'd also point out that thatthe analysts have made no major changes to their price target of US$23.86. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EHang Holdings, with the most bullish analyst valuing it at US$32.95 and the most bearish at US$17.00 per share. This is a very narrow spread of estimates, implying either that EHang Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that EHang Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 99% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.5% annually. 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 most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still 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.
Before you take the next step you should know about the 2 warning signs for EHang Holdings that we have uncovered.
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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.
