KE Holdings shares tumble over 5% as Q4 earnings miss overshadows revenue beat

Published 18/03/2025, 11:28
KE Holdings shares tumble over 5% as Q4 earnings miss overshadows revenue beat

BEIJING -On Tuesday, KE Holdings Inc. (NYSE: BEKE) reported mixed fourth quarter results, with revenue surpassing expectations but earnings falling short of analyst estimates.

The company’s shares were down -5.54% in premarket trading following the release.

The Chinese real estate platform posted adjusted earnings per ADS of $1.14 for Q4, missing the consensus forecast of $1.75 by a wide margin. However, revenue jumped 54.1% year-over-year to RMB31.1 billion ($4.3 billion), comfortably beating analyst projections of RMB27.39 billion.

KE Holdings’ gross transaction value (GTV) surged 55.5% to RMB1,143.8 billion ($156.7 billion) in Q4, driven by a recovery in China’s housing market. Existing home transaction GTV rose 59.1%, while new home transaction GTV increased 49.3% compared to the prior year period.

"Facing market opportunities, we continued to make breakthroughs in scale in 2024," said Tao Xu, Executive Director and CFO. He noted full-year revenue reached a record RMB93.5 billion, up 20.2% year-over-year.

Despite the strong top-line growth, adjusted net income fell 21.6% to RMB1.34 billion ($184 million) in Q4. The earnings miss appears to be weighing on investor sentiment, with shares down 5.54% following the release.

KE Holdings also declared a final cash dividend of $0.36 per ADS, totaling approximately $0.4 billion to be paid to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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