Yahoo Finance Full Truck Alliance Co. Ltd. Just Beat EPS By 180%: Here's What Analysts Think Will Happen Next
As you might know, Full Truck Alliance Co. Ltd. (NYSE:YMM) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.8% to hit CN¥2.3b. Full Truck Alliance also reported a statutory profit of CN¥0.56, which was an impressive 180% above what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Full Truck Alliance
Taking into account the latest results, the consensus forecast from Full Truck Alliance's twelve analysts is for revenues of CN¥10.6b in 2024. This reflects a notable 18% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥10.5b and earnings per share (EPS) of CN¥2.86 in 2024. 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.
Additionally, the consensus price target for Full Truck Alliance rose 12% to US$11.41, showing a clear increase in optimism from the the analysts involved. 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. The most optimistic Full Truck Alliance analyst has a price target of US$14.99 per share, while the most pessimistic values it at US$9.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Full Truck Alliance's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2024 being well below the historical 32% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. Even after the forecast slowdown in growth, it seems obvious that Full Truck Alliance is also expected 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
We have estimates for Full Truck Alliance from its twelve analysts out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Full Truck Alliance that you need to be mindful of.
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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.
